People are responsible for paying local sales taxes when they buy things over the internet, but I got a surprise this week.
This is the scenario. I was on vacation in Florida, and my laptop died. I went to Office Depot and bought a new laptop for $900. I paid the sales tax just like any normal customer. The sales tax in that county for the county portion of the tax was 4 percent, and the state tax was 5% as I recall. I got audited by our parish sales tax office. Our parish tax rate here is 5%. They are requiring me to pay the 1% difference, or $9.00. I could not believe it, so I checked with a friend of mine who has a large company that does construction all of the US. He said that the parish tax agent is right--that I will have to pay the $9. He said they get audited all the time, and if the equipment is brought back to Louisiana he has to pay the difference. On the other hand if the county tax in another state is higher, the parish will not refund the difference.
ARGGGHHHHH. It is not the money; it is the principle of the thing.
Have any of you experienced this?
They tried something like that here a few years ago. It was so insane they finally gave up. No matter where you bought something in the state, you had to pay identical sales tax as that in effect for your address. This meant every vendor of every category had to have a little sheet with every location's tax rate and then be positive that the buyer was giving the correct home location. I don't believe the "home" taxing authority ever got the money, but, it made for an even playing field. Purchasing a new car from a dealer in a town with a lower tax rate than your home town saved you no money, thus evening the playing field.
Zero Sales Tax
You guys make me appreciate Oregons NO Sales Tax. 🙂 The price you see is the price you pay. I always get thrown for a loop when I go to another state and my $5.00 item is $5.25 or something. Fortunately in Washington they honor our no sales tax. All we do is show our Oregon license. Not sure how other states work that, though.
This is SOP almost everywhere....how diligent they are in enforcement and collection is a variable.
For example, here in NY, a car can be bought cheaply many other states.....before they allow you to register it and get the plates, you have to pay the NY State sales tax
For $9.....that's diligent!
"Hidden " Taxes
Thinking of flying into DC for a two night stay. Looked into renting a car at Reagan National Airport from one of the national companies.
Cost of the car : $ 28.00 per day, so $56.00.
Insurance (I need to take it): $ 46.00, bringing the total to $102.00
But then.............
National Airport DCA Contract Fee $5.00 (This covers the fee the Airport charges the rental company to operate)
Airport Concession Recovery Fee $11.38 (This covers the fee the Airport charges the company to be on premises, or nearby)
Veh License Fee Recovery .23/day $0.46 (This covers the recovery of Alamo's average annual cost to license and register its fleet)
Va Additional Tax (4.0%) $4.75 (Who knows what they are taxing here?)
Va Rental Fee (2.0%) $2.38 (Fee????? Fee for what? Why does the State get a fee for me renting a car?)
Va Rental Tax (4.0%) $4.75 (Basically, a sales tax)
Subtotal $28.72
So over 25% of the car rental is fees and taxes.
😛
"Hidden " Taxes
This doesn't address the original issue of collecting local taxes when you buy away from home.
But whatever the taxes and fees are, I think sellers should be required to advertise the total price, not the price before required stuff gets added.
Paid my quarterly sales tax yesterday.
Our form has line amounts for taxable sales (land surveying & supplies) and taxable purchases (items we buy nontaxed and keep and use ourselves).
Statewide is 6.25% and in cities and towns it can get close to 10% by adding in all the services.
We are allowed a timely filing discount of 1/2%.
By law, we are to pay the sales tax rate we live in on any out of state or other purchase (including mail and internet sales) that sales tax was not paid for.
Purchasing a used automobile, sales tax is paid when changing the title and is figured from a book value rather than actual price. So ends the "I paid $50 for that car" or "it was a gift".
Got a pamphlet today stating one currently candidate for office is going to raise sales tax to 14% and tax every item and service sold in the state.
How do you pay your tax quarterly?
I have to pay every month.
Bill
Please box that compass up and send it to me. You can even add tax.
When I signed on for my Texas Sales and Use Tax Permit I called in and the girl ask if I would pay annual and I ask if there was a choice of how often I could pay.
Not wanting to pay every month or once a year, quarterly was the best option for me.
I use WebFile and can do any time of the day or night. If I cannot log on I will call TeleFile. 1% cash back on my credit card 😉
Bill
You'll have to deal with the Surveyors Historical Society. I was just admiring it. If I didn't have anything else to do (ha!) I would get a bench lathe and see if I could build a working solar compass.
