http://newlycorporate.com/2007/10/18/interenet-taxes/ Work, life and the pursuit of happiness for the young professional. Wed, 07 Jan 2009 04:43:23 +0000 http://wordpress.org/?v=2.7 hourly 1 http://newlycorporate.com/2007/10/18/interenet-taxes/comment-page-1/#comment-99 brandonA Fri, 19 Oct 2007 14:42:02 +0000 http://newlycorporate.com/2007/10/18/interenet-taxes/#comment-99 Your close to right. Sales tax is only required to be collected and remitted by stores if they have Nexus with the particular jurisdiction. That is, they have some physical or substantial connections with the state, i.e. a store, employees, property, heavy advertising. If the company does not have that, by law they cannot be required to collect and remit sales tax to the state. However, every state that has a sales tax also has a use tax. A use tax is an equal rate as sales tax but requires the consumer to pay the tax directly to the government on purchases out of state that they did not pay sales tax on. Use tax is not enforced very well on individuals. Your close to right. Sales tax is only required to be collected and remitted by stores if they have Nexus with the particular jurisdiction. That is, they have some physical or substantial connections with the state, i.e. a store, employees, property, heavy advertising. If the company does not have that, by law they cannot be required to collect and remit sales tax to the state. However, every state that has a sales tax also has a use tax. A use tax is an equal rate as sales tax but requires the consumer to pay the tax directly to the government on purchases out of state that they did not pay sales tax on. Use tax is not enforced very well on individuals.

]]> http://newlycorporate.com/2007/10/18/interenet-taxes/comment-page-1/#comment-97 Tad Thu, 18 Oct 2007 19:29:32 +0000 http://newlycorporate.com/2007/10/18/interenet-taxes/#comment-97 Sales tax is levied by states, not the Feds. Hence it's really messy to enforce when you have massive cross-state commerce enabled by the interwebs. I believe that this is a case where the law is clear (you must pay sales tax on items purchased online) but not enforced very well. Sales tax is levied by states, not the Feds. Hence it’s really messy to enforce when you have massive cross-state commerce enabled by the interwebs. I believe that this is a case where the law is clear (you must pay sales tax on items purchased online) but not enforced very well.

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