Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: CodyZen One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121189  
Subject: Re: taxes on mail orders Date: 4/15/1998 1:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0

Author: GlowingFire wrote:
"I'm just sitting here, minding my own business, reading the newspaper because I've finished my
taxes, and I see an article in The New York Times that describes how most people dodge the taxes
they are supposed to pay on mail orders."


States can collect sales taxes under certain conditions on mail order purchases. If the selling organization has a "nexus" of business in your state, then they are required to collect sales taxes on your order. An outlet in the state would qualify. So serveral of the businesses that you named probably have already collected the correct sales tax. States can not require you to pay a "sales tax" if the business does not have a "nexus" as this would interfer with interstate commerce which is prohibited by the US constitution.

However, some states can and do have a way around this. Illinois has a Use Tax which is the equivalent of a sales tax. If you purchase an item in another state for use in Illinois, then you are required to pay essentially the difference between the Illinois sales tax rate and the sales tax that you paid in the other state. It is difficult for them get the information on these sales. However, many states are working with large mailorder houses to get records of sales and then go after violators.

Also, as I interpret the Illinois Use tax, if you purchase an item via mail order that is sent to someone outside of Illinois, then I am not required to pay the use tax. So for Christmas presents sent to relatives in other states, you probably are not required to pay the tax.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Back to the Future Buffalo Wild Wings
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement