General Question

pleiades's avatar

Why would another state charge tax to another state through mail order (see details)

Asked by pleiades (6359 points ) March 17th, 2014

I buy stuff online all the time and when I buy from other states I’m not taxed for Californias tax price, in fact I’m typically never taxed from what I see on orders.

So why would a New York record label charge taxes to someone in California?

Observing members: 0 Composing members: 0

13 Answers

KNOWITALL's avatar

I believe this is being argued in the courts now, but supposedly they aren’t allowed to do that, in-state only.

Tropical_Willie's avatar

More specifics are needed, like record company’s name or is there a in-state outlet of the record company in California.
@KNOWITALL if it is Amazon several states sued and now taxes are charged upon shipment. I know my last two shipments had taxes charged for my state.

pleiades's avatar

@Tropical_Willie It’s just a small time record label… I’m not sure what you’re asking for…

NY Record label charging me tax and I’m in California

Is my main gripe…

Tropical_Willie's avatar

The laws have changed for on-line purchases in several states now. Did they charge you the tax rate for California?

pleiades's avatar

@Tropical_Willie It’s hard to tell I’m off about 2 cents. From my calculations it seems I’ve been charged 9 percent=california tax

But NY states different tax brackets and percentages http://www.nyc.gov/html/dof/html/business/nys_sales_tax.shtml

Buttonstc's avatar

In a word: Greed.

zenvelo's avatar

If they have any presence in California, they should charge California sales tax. And California residents owe the sales tax no matter how it is collected or where it was purchased, if it is delivered to them in California. It’s just that the State doesn’t go after you if (a) you can show the seller collected or (b) it’s not enough to bother spending the time and money to go after you.

Jaxk's avatar

This not universal yet and as stated above is being fought in the courts. If the tax charged is for a product delivered in California, it is California tax. The tax payment is sent to California. If we eventually lose this battle and sales tax is charged everywhere for on line purchases the cost is huge for the vendor. They must keep track of taxes for every state county and city in the country in order to charge correctly and then make tax payments to each of them. It will likely drive many small businesses out of business.

KNOWITALL's avatar

@Jaxk So it’ll probably happen. <sigh>

Tropical_Willie's avatar

You paid about $16 and the two cent was the difference between 8.875 % for NYC and 9.0 % for California.

Jaxk's avatar

@KNOWITALL – That’s the way the smart money is betting.

JLeslie's avatar

The law forever has been if the store has an outlet in the state being shipped to then tax is charged at the amount the receiving state customarily charges. For instance, when I lived in TN when I bought something from Macy’s and shipped it I had to pay tax, because we have Macy’s in TN. If I bought something from Bloomingdale’s and shipped it, I didn’t have to pay any tax, because there is not a Bloomingdale’s in TN.

There was a new law out there to always charge sales tax at the amount the receiving state charges at point of sale. I don’t know of that law passed. If it did I know there are people trying to change it. If it hasn’t been voted on yet I know people are trying to block it.

If it is still the old way as I described in paragraph one, there are plenty of businesses that don’t understand the law and always charge tax. There are also businesses who don’t undertsand the current laws and don’t charge tax even when they should.

Darth_Algar's avatar

If I understand correctly a law passed by the U.S. Congress awhile back now enables states to collect sales taxes on online purchased from out-of-state. Not all states necessarily will do this, but they have the ability now.

Answer this question

Login

or

Join

to answer.

This question is in the General Section. Responses must be helpful and on-topic.

Your answer will be saved while you login or join.

Have a question? Ask Fluther!

What do you know more about?
or
Knowledge Networking @ Fluther