Paying State "Use" Tax

[Noah930]

OK, so another tax poll. Usually, you don't have to pay sales tax on stuff purchased via mail order or the internet, if the retailer is from an out-of-state location.

But now, states are wising up to this, and come tax time (I'm doing taxes this weekend--no moment so productive as the last moment, I say) most states require you to report all that stuff purchased out of state (for no tax or lesser tax than what your home state charges) and taxes you the difference on April 15th.

States call this a "use tax." If you purchased the item from out-of-state, but "use" it in your home state, then you're supposed to pay this tax. I think it's a bit of a BS tax, but I digress.

So how many of you actually figure out how much you've purchased out-of-state from the previous year, and actually pay up at year's end?

Poll is anonymous, of course.

As an aside, I once tallied up my purchases (easy as all purchases would be done via credit card, and I'm going through them at year's end to figure out legit deductions, anyway) and reported the purchases in my state income tax return. One year, I actually overtaxed myself, as I had purchased clothing from an out-of-state retailer, and forgot that Massachusetts doesn't tax on clothing under $250. So I paid tax on stuff I didn't have to.

Pissed at myself, I remembered this the following year while TurboTaxing. But by then, Taxachusetts had rewritten their law such that if your reported purchases were less than a certain amount, the state just slapped on a flat tax amount--not rate, but amount. So I wound up paying more than I should have the second time around, too. Bogus.

[slodave]

Keep in mind... Anything you buy over the Internet, but don't receive a tangible item, is non taxable. Even inside Cali. Software, music...

BTW, I don't report what I buy online.

[Noah930]

Correct. And anything that's not normally taxed in your state (like clothing under $250 in Massachusetts, or non-prepared food in California) is not taxed.

[Porsche-O-Phile]

First time they try this with me I'm going to tell them to (1) prove it and (2) go cram it. That'll be the day for sure when I pack up my stuff and move the hell out of this sinking ship of a state - job waiting for me elsewhere or not.

Time to vote with my feet.

[pwd72s]

No sales tax in Oregon. Not that our politicians don't want one...just that everytime they pass one, it ends up on the ballot, and then goes down heavily.