[Uncledan]

I would like to ask a question about US sale taxes polices. If I buy something from NY and ship it to Taxes (or other states), do I have to pay 7% sale tax from NY? In Canada, the taxes rate are depend on buyer location. I live in Ontario (tax rates=15%), and buy something from B.C. (tax rates=7%) local store, then I have to pay 15%. Is it same as US? Which state have the lowest tax rates?
Thanks

 

[Firam]

You only pay sales tax if the seller and the buyer are in the same state.

 

[socrates63]

Quote:

Originally Posted by Firam You only pay sales tax if the seller and the buyer are in the same state.

Well, this is correct in practical terms. Sellers usually only collect sales tax from buyers in the same state. However, I believe most states require that sales tax is collected for transactions from out-of-state buyers as well. It's just that the law isn't enforced so no one bothers.

Uncledan, there are some states that do not have a sales tax (e.g., Oregon). And there is no "US" sales tax policy since there is no national sales tax. Presently, sales tax is stipulated by states and collected by individual states.

 

[Uncledan]

Quote:

Originally Posted by socrates63 Well, this is correct in practical terms. Sellers usually only collect sales tax from buyers in the same state. However, I believe most states require that sales tax is collected for transactions from out-of-state buyers as well. It's just that the law isn't enforced so no one bothers. Uncledan, there are some states that do not have a sales tax (e.g., Oregon). And there is no "US" sales tax policy since there is no national sales tax. Presently, sales tax is stipulated by states and collected by individual states.

Thx for your reply. Is this true that the currier company may help states to collect tax? Let say from Las Vegas to NJ or NYC. I need all the detail about this, since I plan to buy something expansive from Las Vegas. This information may help me save few hundreds.

 

[socrates63]

State to state within the US? I've never heard of a courier collecting sales tax and there's no way a courier company has the authorization to collect sales tax on behalf of the state.

The only time I'm aware of money being given to the courier is when something is ordered COD (cash on delivery).

 

[Uncledan]

Thanks for your information.

 

[Audio Addict]

If the company you're buying from doesn't have nexus in the state they are shipping to, they usually won't collect the sales tax. However, if they do then they are required to collect that state's sales tax and remit it to the state where it was shipped.

If they don't, most states have use tax laws, that transfer the liability over to the recipient. On an individual basis, the enforcement is usually up to the individual, even though some states include the form in their annual income tax booklets distributed. Businesses are another story. They are audited by the state for compliance and can face substantial penalties for noncompliance.

A friend of mine recently bought a condo in Florida but purchased the furniture from one of the N.C. furniture warehouses and shipped to the condo. He received a bill from Florida for the tax on the furniture.