Scott & Bill,
My disagreement with the previous statement that a Tax advisor said “Most States†have enacted similar Sales Tax laws, is with the use of the phrase “Most Statesâ€.
People tend to use inexact terms or phrases like “Most†or “Many†when they don’t really know the exact count. They often claim that these inexact terms are 100% reliable because they came from some “Expert†who has intimate knowledge of the subject. I feel that if they were such experts, they would confidently know the exact numbers, and not throw around meaningless facts that are subject to misinterpretation.
Perhaps the Tax advisor said “Some States, or even “Many Statesâ€, but that got translated to “Most Statesâ€?
This is not meant to say anyone is purposely lying. It’s just human nature, and I now I am guilty of using the same inexact phrases.
To me “Most States†would mean more than just 26 of the 50 states, but at least a 2/3 majority of the States would have to have enacted these Sales Tax laws. That would mean about 34-35 States. 2 States or 6 States still does not even come close to "Most States" So I stand by my original statement that “I doubt that “Most†States have passed these Sales Tax laws. You are free to search the web if you wish, but I don't feel it's necessary and a waste of time.
Bill, I’m not sure what you are talking about regarding sales taxes on vehicles. I was in the military for 20 years and purchased and registered many vehicles in different states. I have found States that do not charge any additional taxes if the vehicle was registered in the other State for more than 2 years.
I have also encountered States that will charge you additional taxes if that State has a higher tax rate than the original state where you paid taxes on the vehicles. And I have also encountered States that will charge sales tax on the current wholesale value on the vehicle
States can do this because vehicles are required to be titled and registered. Paying Sales taxes are usually required to register the vehicle, so you can purchase and own a vehicle and still not pay any Sales taxes as long as you do not register the vehicle. That’s basically the way Car Dealers buy and sell vehicles without paying Sales Taxes,
Scott,
My statement regarding that these laws are not enforceable and cannot go beyond voluntary payment of Sales taxes for purchases from other States, and could actually border on being illegal. States are not permitted to levy import taxes or tariffs on goods from other states. While states may call it a Sales Tax, if it is applied to sales and purchases made in other states, it could be interpreted as an import tariff on goods from another state…That is illegal, and goes against the basic concept in the word “United†in the “United Statesâ€.
I agree that you as a merchant could care less about the sales taxes other states collect since you are only responsible for collecting California Sales Taxes because that’s where your business is located. I have to collect Texas Sales Taxes for sales made in Texas and I must pay my taxes quarterly.
Those states that require or request residence to make voluntary Sales tax payments for purchases made outside their state cannot go beyond voluntary payment of Sales taxes.
There are really only two ways to enforce mandatory compliance. One way would require that selling businesses in other states to report purchases to each state where individuals made purchases. That would require a seller to obtain positive identification from the buyer such as their SSAN, since that is what Federal and State Tax authorities currently use to link tax revenue to tax payers. I don’t think Sellers would want to accept that additional burden or responsibility.
The other way would be to get sellers to collect Sales taxes at the time of the Sale and forward the collected taxes and repo
My disagreement with the previous statement that a Tax advisor said “Most States†have enacted similar Sales Tax laws, is with the use of the phrase “Most Statesâ€.
People tend to use inexact terms or phrases like “Most†or “Many†when they don’t really know the exact count. They often claim that these inexact terms are 100% reliable because they came from some “Expert†who has intimate knowledge of the subject. I feel that if they were such experts, they would confidently know the exact numbers, and not throw around meaningless facts that are subject to misinterpretation.
Perhaps the Tax advisor said “Some States, or even “Many Statesâ€, but that got translated to “Most Statesâ€?
This is not meant to say anyone is purposely lying. It’s just human nature, and I now I am guilty of using the same inexact phrases.
To me “Most States†would mean more than just 26 of the 50 states, but at least a 2/3 majority of the States would have to have enacted these Sales Tax laws. That would mean about 34-35 States. 2 States or 6 States still does not even come close to "Most States" So I stand by my original statement that “I doubt that “Most†States have passed these Sales Tax laws. You are free to search the web if you wish, but I don't feel it's necessary and a waste of time.
Bill, I’m not sure what you are talking about regarding sales taxes on vehicles. I was in the military for 20 years and purchased and registered many vehicles in different states. I have found States that do not charge any additional taxes if the vehicle was registered in the other State for more than 2 years.
I have also encountered States that will charge you additional taxes if that State has a higher tax rate than the original state where you paid taxes on the vehicles. And I have also encountered States that will charge sales tax on the current wholesale value on the vehicle
States can do this because vehicles are required to be titled and registered. Paying Sales taxes are usually required to register the vehicle, so you can purchase and own a vehicle and still not pay any Sales taxes as long as you do not register the vehicle. That’s basically the way Car Dealers buy and sell vehicles without paying Sales Taxes,
Scott,
My statement regarding that these laws are not enforceable and cannot go beyond voluntary payment of Sales taxes for purchases from other States, and could actually border on being illegal. States are not permitted to levy import taxes or tariffs on goods from other states. While states may call it a Sales Tax, if it is applied to sales and purchases made in other states, it could be interpreted as an import tariff on goods from another state…That is illegal, and goes against the basic concept in the word “United†in the “United Statesâ€.
I agree that you as a merchant could care less about the sales taxes other states collect since you are only responsible for collecting California Sales Taxes because that’s where your business is located. I have to collect Texas Sales Taxes for sales made in Texas and I must pay my taxes quarterly.
Those states that require or request residence to make voluntary Sales tax payments for purchases made outside their state cannot go beyond voluntary payment of Sales taxes.
There are really only two ways to enforce mandatory compliance. One way would require that selling businesses in other states to report purchases to each state where individuals made purchases. That would require a seller to obtain positive identification from the buyer such as their SSAN, since that is what Federal and State Tax authorities currently use to link tax revenue to tax payers. I don’t think Sellers would want to accept that additional burden or responsibility.
The other way would be to get sellers to collect Sales taxes at the time of the Sale and forward the collected taxes and repo
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