A question about US tax...

[lowcrust]

So if I buy something online and ship it to another state I don't have to pay tax but if it's the same state I do? I usually buy stuff on Amazon and have them ship it to a friend (in NY). I have never had to pay tax on that stuff. But then I ordered something through B&H and they added the tax.

Now a friend is going to NYC and I'd like for him to pick some stuff up for me at their NYC store and I'm assuming they will add the tax. Is there a way to get this back (as a tourist/foreigner)? We have this in Europe, you get the tax back either in the store directly or at the border (as you have to pay tax when you enter your own country again (unless you, ahem, forget to declare it)).

[Jon]

No - sales taxes here are levied at the state level, not the national level as they are in Europe. And the states don't let go of the money once they've collected it.

[lowcrust]

OK, thanks. So you would rather order from a state different than your own then?

[krb]

As a general rule, yes. There are a few states that don't have sales tax so if you live in one of those you don't care. For the states that do have sales tax you are supposed to declare anything purchased through the mail over state lines and pay teh tax on it at the end of the year but that doesn't really seem to be enforcable. From time to time you'll here about a states wanting to tax online commerce but it never goes anywhere.

[MDJAK]

Also, if the store you buy from has a brick and mortar location in your state, they will also charge you tax.

And technically, even if you're not charged tax, you're supposed to remit it, though I doubt anyone does.

[lowcrust]

Thanks guys!

I still save money even with the tax added so although it feels a little iffy paying local VAT, I guess you guys could use a helping hand right now. Please advise your local government to spend that extra income wisely! ;)

[RDKirk]

As you could probably gather from above, your friend in NY got charged sales tax because he and B&H are in the same state, and New York state charges a sales tax. Dealers are required to "collect" the tax for local purchases and remit it to the state, but only for the states where they have a physical presence.

[lowcrust]

Yes, he was in fact charged the extra VAT. No big deal as it was minor stuff.

When I buy my 1D MKIV I'm gonna make sure I buy it over the state border... ;)

[RDKirk]

Yes, he was in fact charged the extra VAT.

Although it's not a VAT, it's a retail sales tax...it's a tax that is only applied once: To the retail sale, not at every point that "value" is added.

[rklepper]

You have got to be kidding me. Why would anyone knowingly not remit the taxes that are due on purchases. Makes no sense to me.


Also, if the store you buy from has a brick and mortar location in your state, they will also charge you tax.

And technically, even if you're not charged tax, you're supposed to remit it, though I doubt anyone does.

[lowcrust]

Although it's not a VAT, it's a retail sales tax...it's a tax that is only applied once: To the retail sale, not at every point that "value" is added.

Ah, OK. So this tax is different from state to state?

[RDKirk]

You have got to be kidding me. Why would anyone knowingly not remit the taxes that are due on purchases. Makes no sense to me.

Because it's a separate, end of the year "honorary" effort. At the end of the tax year everyone who bought something on the Internet or mail order from an out-of-state dealer for which sales tax was not collected by said dealer is supposed to total all those purchases, figure the tax that would have been due his home state had he bought those items there, and send a check to the state department of revenue.

Most people never get around to doing that, except we with our own businesses in the state who are likely to get caught.

Or were you being ironic? Perhaps you forgot your {Fe} and {/Fe}

[RDKirk]

Ah, OK. So this tax is different from state to state?

Yes. Remember that the US was originally set up much as the EU is today--the states were actually independent nations under a loose confederacy. The differing state tax laws today are a vestige of that beginning.

[lowcrust]

That begs the question... which state should I be doing my business in then? =)

[Woolburr]

That begs the question... which state should I be doing my business in then? =)

Which ever state houses the store that has the best prices and service.

[20droger]

Ah, OK. So this tax is different from state to state?
Not only is it different from state to state, it is often different from city to city.

For example, here in Arizona a specific AIO printer we recently purchased was over $13.00 cheaper in Sierra Vista than it was in Tucson. Since we are about equidistant from both cities, we only buy in Tucson when we have to.