[GNC] Automatic sales tax

[John Layman]

According to SalesTaxInstutute.com:

Sales Tax is tax on the sale, transfer or exchange of a taxable
item/service, generally charged to the purchaser as an add-on to the price,
the purchaser typically being the consumer or end user.

Use Tax is a tax on storage, use, or consumption of a taxable item/service
on which no sales tax has been paid.  It is a complementary or compensating
tax and does not apply if sales tax was charged.

California is described by TaxJar as a hybrid origin state with some of the
most complex sales tax laws in the country.

-----Original Message-----
From: gnucash-user <gnucash-user-bounces+john.layman=ieee.org at gnucash.org>
On Behalf Of Stan Brown
Sent: Monday, February 28, 2022 9:58 AM
To: gnucash-user at gnucash.org
Subject: Re: [GNC] Automatic sales tax


On 2022-02-28 06:34, Michael or Penny Novack wrote:
> But if not a remote sale, if person living in state A buys something 
> at a seller in state B (and state B has sales tax) collected based on
that.
> Now the buyer might still owe sales tax to state A when bringing the 
> whatever home.

The tax the buyer pays to their home state after "importing" goods for
personal use is called use tax in every state I've lived in.

You didn't mention the case where buyer and seller are in different taxing
jurisdictions within the same state. I don't know how other states do it,
but when you live in county C in California, go to a dealer in county D in
California, and buy a car, the dealer is required to charge sales tax at
county C's rate, not county D's. Probably the same is true for boats. For
smaller items, you pay at the rate of the seller's county, and there's no
credit if you take the goods back to your home in a lower-tax county.

> When they pay that on their state return, they can claim credit for 
> the sales tax (if any) already paid for that thing to state B.

Maybe. Some states don't allow it, or allow it only up to the home state's
tax rate.

--
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
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