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On Line E-Commerce Sales Tax Collection

 
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ruko

posts: 2

Apr 02, 2007 2:40 PM ET    Quote  Report Abuse
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I`m curious as to how the sales tax collected from me for an online sale in another state makes it back to my state? Does it all get back to my state or are there administrative costs involved? If all the money does not make it back to my state then I would much rather pay sales tax directly by purchasing locally and I would certainly avoid those on line businesses who collect sales tax. 
ruko2007-4-3 9:27:45
USAMS

posts: 1

Apr 02, 2007 4:31 PM ET    Quote  Report Abuse
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Hi Ruko, I`ve done a little research on this and I believe it works like this.  If you buy from an online retailer you are not taxed unless you reside in the same state as the business you are buying from.  Where I live for example the State of Washington will require online retailers to collect and pay sales tax for any sold items shipped to a customer within Washington State.  If an item is sold and shipped to a customer out of state, no tax is collected on the sale.  State tax laws vary but this is the case for WA.  Currently there is a group of states working together to figure out how to capture all that lost sales tax revenue so this nice benefit to online shopping may not last for long.

ruko

posts: 2

Apr 03, 2007 9:14 AM ET    Quote  Report Abuse
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Thanks for your reply. Here is an example: I live in Minnesota and I purchased a GPS unit from DeLorme in Maine. I had to include Minnesota sales tax, 6.5%,  in the payment sent to DeLorme. I know why DeLorme collects this tax and this is not my question. My question is, how much of this money gets back to Minnesota from DeLorme in Maine? There must be some kind of administrative costs involved to transfer the money back to Minnesota. In other words how much does Maine take for this service? 
sydni212

posts: 7

Apr 03, 2007 12:21 PM ET    Quote  Report Abuse
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My state, Texas, is the same as USAMES. We don`t have to charge taxes to out of state customers. I thought that was across the board. I looked up your state and it is the same. You do not have to charge sales tax to customers outside the state. When buying out of state, you must file the use tax in your state for what you buy.

 Here is the link http://taxes.state.mn.us/taxes/sales/tax_information/content /intersales.shtml



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Bree

posts: 30

Apr 10, 2007 5:26 PM ET    Quote  Report Abuse
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Hi there,

Any business who is selling as interstate or a foreign commerce are liable for sales tax where the product is delivered, and therefore they collect the sales tax based on where you live for the city, county, and state and other special taxes.  Texas has many taxes that a retailer is liable for.  You will be charged the company that collects the sales tax that you paid will be filed to your state on whatever recurrence your state deems necessary.  I have worked with a interstate and foreign commerce where we had sold items and delivered them to a texas resident and were liable for the taxes and the state keeps track of these things.

Bree

Bree

Bree

posts: 30

Apr 10, 2007 5:28 PM ET    Quote  Report Abuse
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To answer directly, ALL sales tax collected from you is sent to the state in where you live.

Bree

jomyjk7

posts: 1

Jul 09, 2010 7:37 PM ET    Quote  Report Abuse
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Tired of continuous searching? Here's what you are looking for - [url=http://www.trustdownload.com/Internet/Browsers/File-Tax-Online-Application.html]File Tax Online Application 1.0[/url]



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LLC_Taxes

posts: 10

Sep 21, 2010 12:58 PM ET    Quote  Report Abuse
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It's been a while since this thread has been updated . The rules have changed over the past couple years. Doing business online is like doing business in the wild west. Lots of great areas. Since the recession began many states have changed the rules on how e-commerece businesses are taxed. Your best bet --speak to your CPA.

MollyG

posts: 15

Jan 06, 2011 4:28 PM ET    Quote  Report Abuse
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Sales Tax can be very confusing.

Check out this blog to find out some information about what to look for when it comes to sales tax online. Its a very gray area still and there are many issues that are still being worked out with each states government.

Hope this helps!

bannerbuzz

posts: 1

Jan 13, 2011 4:52 AM ET    Quote  Report Abuse
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sale tax is really very confused us. how we pay it. and its different rules does not know all people. so we need proper information of the paying sales tax

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