Tax on On-Line Purchases?
I just read on a guitar board that if a Californian buys a guitar out of state, then they still have to pay the calculated sales tax amount to the state of California?
That doesn't seem correct. How would California now what you have purchased out of state?
You're supposed to be up front and honest about your purchase so the tax money can be given to people who won't/don't work and to have your rights eroded. Its not difficult.
It's not that expensive, and it's not that difficult to figure out:
http://www.boe.ca.gov/info/eut.htm
http://www.boe.ca.gov/pdf/2011UseTaxTable.pdf
BTW: Use tax (aka out of state sales tax) isn't exclusive to CA.
In all seriousness this is true. Most states require you to voluntarily report tax from sales in another state when the purchase was made in person, via mail, internet, etc.
I think this got discussed on another forum I was on also. California wants you to report out of state purchases. I believe that there is a place on the California income tax forms to do so. But OP you are right, it is almost impossible for them to determine what you bought online or out of state. Since this is California, "land of the fee", they will try and tax you for anything and everything they can get. I believe and I'm not a legal authority, but if you paid sales tax in the state you purchased it you are exempt. This state will try anything to collect taxes on anything they can, so they can continue to finance Sacromentos mismanagement of the state and all the special interest programs they support. Case in point: Some years back, I purchased a used private party boat that had been titled and registered by the original owner in California. I purchased the boat in Arizona and had title and registration transfered to my vacation house there as that's were I keep the boat. Arizona has no sales tax on private party purchases of vehicles or vessels, so no sales tax was due. California wanted sales tax on the boat (7.75% of $50k, approx $3800) even those they had no rights to collect the tax. The sale was not made in California, nor was there any title change, bill of sale or paperwork ever generated in California, but because the original owner had it registered here, they thought they would try to collect taxes on the sale. Naturally, I fought it and won, but they tried anyway.
Thanks guys.
I'll try to keep this in mind. A rich government is a strong government.
