[GNC] Automatic sales tax

Liz edodd at billiau.net
Mon Feb 28 18:25:18 EST 2022


On Mon, 28 Feb 2022 06:58:08 -0800
Stan Brown <the_stan_brown at fastmail.fm> wrote:

> 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.

It's incredibly complex. And Australians have all been led to believe
that we have the most complex tax system on the planet. 

Liz


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