California sales tax on internet purchases?

[Mach]

What gives? I just ordered a slim line drive from slidirect.com (based in CA) and they charged me sales tax although I'm not in California. I typically get charged sales tax on internet purchases if the seller is in my state. Has there been some new law passed? Limited googling doesn't point to anything conclusive.

[Indybird]

I haven't heard of that anywhere, thank god I haven't encountered that yet. The only time I get charged sales tax is when I'm buying Ink for my Dell printer, since they have a warehouse not that far from where I live.

-Indybird

[BuzzKillington]

I wouldn't doubt it and surely there's more new taxes to come! :)

I sent an e-mail to my business professor because now I'm curious what law it is that states you only pay taxes on e-commerce within your own state's boundaries and if a new law has been imposed.

Knowing him, I'll get back to you in a few days.


EDIT: Found this...


In the case of online retailers, the tax authority has two separate parties that it can go after to pursue sales tax. The first is the retailer. However, if the retailer is not liable for the tax because of lack of nexus, or if the retailer is no longer in business, then the tax authority can and will hold the customer liable for use taxes. This is a little known fact among consumers -- that a customer of an online retailer is liable for use tax (equal to the amount of sales tax) even though the online retailer might not be obligated to collect the tax. link. (http://www.ecommercetimes.com/story/67255.html)

[Mach]

Looks like something's going on (via hardocp)

http://seattletimes.nwsource.com/html/localnews/2009411798_apusteconlinesalestaxes.html

I thought it was still tied up in legislation tho. Washington has an initiative underway called Mainstreet fairness or similar. It tries to level the playing field between a local vendor and an e-tailer by requiring the e-tailer to collect sales tax also.

I thought this was already in place because if I buy something from Frys.com, they charge sales tax because they have a brick and mortar store in my state. Interstate sales are not supposed to be taxed though ie store in one state and buyer in another. The Fed controls this, not states. If Washington changes this, it means that mail order catalog sales are affected also which has always been protected.

Either way it'll be a nightmare for e-tailers to keep track of 50 different tax rates.

I sent slidirect an email asking for an explanation. Looks like tax free internet is going the way of the dodo.

[xRyokenx]

New York charges sales tax on all purchases made that are shipped to an address in the state... at least that's how it was when I left their. Kind of retarded.

[NightrainSrt4]

Either way, most states you are obligated to file the amount equal to state tax even if you purchased online and did not pay it. You are supposed to add it in each year when you file. No one ever does, but doesn't mean you aren't supposed to be doing it.

[Drum Thumper]

I wonder how this works for those of us who live in states without sales taxes (Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon). The whole sales tax concept has always reeked of 'taxation without representation' to me as it is anyways; which ironically enough we fought one war over already.

[nevermind1534]

I wonder how this works for those of us who live in states without sales taxes (Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon). The whole sales tax concept has always reeked of 'taxation without representation' to me as it is anyways; which ironically enough we fought one war over already.

But in most stares, you still get money back when you file. Still pay more than that in sales tax, though.