[GNC] Automatic sales tax

Stan Brown the_stan_brown at fastmail.fm
Mon Feb 28 09:58:08 EST 2022


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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