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Join Date: Dec 2003
Location: Downey, CA
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Sales/Use Tax in CA and other states

I was reading in Turbo Tax that the consumer has to pay use tax on all internet and out of state purchases and if the seller does not charge the tax, you are required to report this amount on your tax return. So does this mean that every purchase I make from an online seller, I have to keep track of and then pay the local tax rate to the state of CA in my case. This seems kind of strange. I thought the Internet Tax Freedom Act which was extended I believe made tax on such purchases non-existent.

http://www.ecommercecommission.org/ITFA.htm.
http://www.cob.sjsu.edu/facstaff/nellen_a/ITFA.html

Your opinions and thoughts please.

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Old 03-06-2006, 06:31 PM
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I've heard that this is a requirement, Chris, although no one actually does it. Kind of like reporting your landscaper and housecleaner's wages
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Old 03-06-2006, 07:38 PM
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They had this in WA when I lived there, as I recall you were supposed to pay WA state sales tax on anything bought from a non sales tax source (unsure if they wanted double tax if you paid other state's sales tax) The only thing that this is enforcable on is motor vehicles which you'd have to pay the tax on to register locally.

Old 03-07-2006, 04:46 AM
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