Need tax help asap!

[slowpoke]

Hey, I have a question for all you gurus out there. More specifically interstate retail/wholesale tax gurus.

If X purchases goods in Cali then ships them to Washington, is person X subject to taxes in washington?

If not, can you support your claim with legal documents ( i.e tax laws, etc ) Thanks! Getting this answered asap would be SUPER helpful!

[stimpy]

You can wait for more information but the short answer is 'no'.
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[slowpoke]

thanks, but i would greatly appreciate the source too. Waiting for it!

Now what if it was based on internet transactions? i.e I purchased the product over the internet and had it shipped to washington. Does the sales tax depend on the seller's original state? Thanks! Source appreciated too!

[stimpy]

As long as the seller ships the item to washington - the buyer will not be taxed.

This should answer just about all your questions:
http://www.nolopress.com/article.cfm...1/277/167/ART/

"If an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales into that state."
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[scollins]

Buyer X is still responsible for "USE Tax" in the state of Washington for all purchases, regardless of where the items were purchased. Now, does that mean people actually PAY the Use tax, which is really based on the honor system? HELL NO THEY DON'T!

For example, you live in Washington and you buy a TV in Oregon (no sales tax) for $1,000. You pay the retailer in Oregon $1,000 and say "thank you!". Technically, you owe Use Tax of $95.00 (based on where you live, this is based on Seattle.) You are supposed to fill out the Use Tax form and send a check to the Dept of Revenue.

Like I said, do people do it? Sometimes, but mostly it is ignored.

More than you ever wanted to know about Use Tax in WA:
http://dor.wa.gov/content/FindTaxesAndRates/UseTax/

[golfinz]

What kind of goods are we talking about? Did you buy goods on a vacation then having them shipped to WA? Buy something online from Cali and having it shipped to WA? I bought wheels from wheeldude, he is in cali and Im in Tx and didn't pay sales tax...

If you bought goods in cali and paid sales tax, then shipped them to WA, you will not have to pay tax on them...that would be double taxation

[scollins]

Originally Posted by golfinz

What kind of goods are we talking about? Did you buy goods on a vacation then having them shipped to WA? Buy something online from Cali and having it shipped to WA? I bought wheels from wheeldude, he is in cali and Im in Tx and didn't pay sales tax...

If you bought goods in cali and paid sales tax, then shipped them to WA, you will not have to pay tax on them...that would be double taxation

That hasn't stopped the government in a long, LONG time. Double taxation? Hell, we've got triple and quadruple taxation sometimes now.....

[MCS]

If the retailer has a store location in the state that he's shipping to, then there'e sales tax charged:

For example - If you Order from Barnes and Noble.com and have it shipped from Tennesee (I don't know where their Distribution center is) to Oregpn, and there's a b&n store inOregon, you will get charged state sales tax.)

If you order product form Amazon.com and their DC is in New mexico shipping to Oregon - you won't be charged a sales tax.

This is how Amazon has been avoiding charging a tax to their customers for years. They put their DC in Pennsylvania to service their high volume customers in NJ, NY, and Connecticut

There's some rules as to what constitues a location within the state, I don't know what it is.

As for the wholesaler/reseller rules, most retailers have what's called a "reseller's tax exemption" certificate. Its valid by state. If you sell to a retailer that then in turn, sells it to a final consumer, only the final transaciton is levied the tax.

I.e. If Polo sells a box of shirts to Macy's New York, Tax is not charged. Macy's has a tax exemption certificate valid for the state of NY. Macy's will charge a state sales tax to the end-customer.

There's been talk about hitting consumers with a VAT tax, common in Europe and Canada. A Vat tax works similar to the sales tax, except its levied in every transaciton. i.e Manufacturer sells to a distributor - chaged a tax, distributor sellls to a retailer, taxed agian, and retailer charges a tax to the final consumer. The taxes can really compound and spiral.

Very touchy subject - May go under the Politics board.

Hope this helps.