DoingHomework wrote:That doesn't work. You still have to pay use taxes which are almost always the same rate as sales tax. Unless you are suggesting people commit tax evasion. Nah, I know you wouldn't suggest that.
ivotedale wrote:Highly interesting- perhaps I meant there is no automatic addition of sales tax upon checkout.
I recently ordered a point-and-shoot camera from Amazon not too long ago, and was not charged sales tax via the seller (Nashville, TN) or Amazon. I did read up on the subject in regards to AZ, and found this:
So yes, one would be obligated to report sales tax if none was applied in an online order.
I'm not one to avoid paying my state's taxes, but by what means will they stop everyone in the state? Or what of those who pay with, for example, visa gift cards or similar? It would be insanely difficult to track those individuals down.
JCarter wrote:Tax evasion? How so, he is not paying the taxes upon purchase but deferring the payment until tax time. That is not tax evasion, as he still has an obligation to pay at the end of the quarter/year.
DoingHomework wrote:Perhaps I misunderstood. In Arizona we now have to pay sales tax at the time of purchase. If we don't then we have to declare and pay the taxes on our state tax return the following year. If one makes the declaration then it is not tax evasion.
What I meant was that having something shipped to an out of state address then reshipped into the state does not eliminate the need to pay sales taxes so it is pointless. But if one fails to report the purchase it is then (state) tax evasion.
Trust me, I think it sucks! But I comply because it would simply be very easy to track down some of the people buying online and avoiding taxes and then collecting from them.