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Sunny Day · 08-09-2012, 10:18 AM

If you buy in a store, you pay the sales tax at the store's location. However, when you buy a big ticket item such as a car you pay the sales tax for where you live when you register the car or at the dealer if it's a local purchase. Some places, such as Kansas City, which is in 2 states know you might buy a car across state lines, so the 2 states have an agreement to require the dealer collect the correct sales tax and forward to the proper agency. When you buy an item by mail, companies like Amazon will collect the proper tax for your mailing address. Many companies don't collect the tax and you are liable for Use Tax.

Usually mom & pops can get away with not collecting out of state Use Tax (out of state sales tax). Amazon is so big, that tax agencies go after companies like Amazon. Every state that collects sales tax has an audit team that regularly audits big companies for sales & use tax compliance.

As I've posted before, there is no one sales/use tax rate. A few states like New Jersey & West Virginia have a state-wide rate. A couple of states like Delaware have zero sales tax. After that it gets complicated in a hurry. Alaska has no sales tax, but cities and boroughs (counties) have sales tax. And even crazier, many of the Alaska sales taxes are only during tourist season of March to September.
Louisiana has a state sales tax, but you also have to remit to the parish a sales tax. Alabama is even worse. there's the state rate and there may also be a county and city rate. Alabama allows for counties and cities to hire private companies to collect their tax.

In Texas you can stand on a street corner and each corner has a different rate. That's because Texas allows for special sales taxes for library, school, fire or hospital districts.

Oh yeah, I forgot to mention many groups, such as churches are exempt from sales tax. Some states even exempt veterans from sales tax. Then there's what's taxable in that state. Many have long lists of items specifically exempt from sales tax.

So to accurately collect sales tax, you have to know the exact address of the buyer. Takes the GIS files from that state and a huge database of sales tax areas. There are about 50,000 different sales tax areas in the US and the rates are constantly changing.

And Amazon can't make money off sales tax, except the float while holding the money. Many states require a company to remit all sales tax collected, even if they accidentally collected too much or they rounded up.

AND you guys are right. Taxes are theft we don't need any taxes. Don't need any police or fire protection don't need roads or schools. Missouri has 5 cents a gallon less tax on gasoline and you can sure tell it by Missouri's crappy roads and when it snows, Missouri has no snowplows while Kansas roads are clean.

Speaking of my grammar post, I see several faults here. Sorry, taxes not grammar is my specialty.

08-09-2012, 10:18 AM
Sunny Day Confirmed User Industry Role: Join Date: Dec 2010 Posts: 1,406	Sales Tax If you buy in a store, you pay the sales tax at the store's location. However, when you buy a big ticket item such as a car you pay the sales tax for where you live when you register the car or at the dealer if it's a local purchase. Some places, such as Kansas City, which is in 2 states know you might buy a car across state lines, so the 2 states have an agreement to require the dealer collect the correct sales tax and forward to the proper agency. When you buy an item by mail, companies like Amazon will collect the proper tax for your mailing address. Many companies don't collect the tax and you are liable for Use Tax. Usually mom & pops can get away with not collecting out of state Use Tax (out of state sales tax). Amazon is so big, that tax agencies go after companies like Amazon. Every state that collects sales tax has an audit team that regularly audits big companies for sales & use tax compliance. As I've posted before, there is no one sales/use tax rate. A few states like New Jersey & West Virginia have a state-wide rate. A couple of states like Delaware have zero sales tax. After that it gets complicated in a hurry. Alaska has no sales tax, but cities and boroughs (counties) have sales tax. And even crazier, many of the Alaska sales taxes are only during tourist season of March to September. Louisiana has a state sales tax, but you also have to remit to the parish a sales tax. Alabama is even worse. there's the state rate and there may also be a county and city rate. Alabama allows for counties and cities to hire private companies to collect their tax. In Texas you can stand on a street corner and each corner has a different rate. That's because Texas allows for special sales taxes for library, school, fire or hospital districts. Oh yeah, I forgot to mention many groups, such as churches are exempt from sales tax. Some states even exempt veterans from sales tax. Then there's what's taxable in that state. Many have long lists of items specifically exempt from sales tax. So to accurately collect sales tax, you have to know the exact address of the buyer. Takes the GIS files from that state and a huge database of sales tax areas. There are about 50,000 different sales tax areas in the US and the rates are constantly changing. And Amazon can't make money off sales tax, except the float while holding the money. Many states require a company to remit all sales tax collected, even if they accidentally collected too much or they rounded up. AND you guys are right. Taxes are theft we don't need any taxes. Don't need any police or fire protection don't need roads or schools. Missouri has 5 cents a gallon less tax on gasoline and you can sure tell it by Missouri's crappy roads and when it snows, Missouri has no snowplows while Kansas roads are clean. Speaking of my grammar post, I see several faults here. Sorry, taxes not grammar is my specialty. Last edited by Sunny Day; 08-09-2012 at 10:31 AM..