Sales tax for out of state purchase?

[Diamonds]

Potentially buying some furniture from someone on Etsy in Arizona and they are telling me that they need to collect sales tax. I'm not trying to be difficult. I'm just confused. Thoughts?

[TTQ B4U]

Potentially buying some furniture from someone on Etsy in Arizona and they are telling me that they need to collect sales tax. I'm not trying to be difficult. I'm just confused. Thoughts?

Not familiar with Etsy but are they fulfilling the order from a warehouse they have in ohio?

 

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[Diamonds]

Not familiar with Etsy but are they fulfilling the order from a warehouse they have in ohio?

 

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No, Arizona

[STEVE-O]

No, Arizona

 

If it’s bought sold shipped and the distributor is all out of state im with you I don’t see a single reason why there is the sales tax

[Mace1647545504]

You are supposed to collect sales tax any anything bought even if it's from out of state. Now do I subscribe to that..hell no but that's what is supposed to happen.

If it's an individual tell them thanks but no thanks, if it's a business then you may be stuck paying

 

mace

[Franchi]

If they have a physical presence in your residing state, aka a brick and mortar store in Ohio, then they are required to collect sales tax. If they don't and it's a online purchase from out of state, they are not required too.

 

There has been lots of talk about what Mace is referring too but none of the laws dictating that have passed at all to best of my knowledge.

 

That being said, not everybody is aware of how this stuff works and some folks also who DO know it, try to charge sales tax when they dont have too, just to try and make some extra $ from the sale.

[LJ]

Arizona's law requires the tax.

[JaronsToy]

Arizona's law requires the tax.

 

Beat me to it

[Mace1647545504]

If it's the law in Az. then don't buy anything from there..they then may change the law

[spectragod]

If it's the law in Az. then don't buy anything from there..they then may change the law

 

While this is how we all feel, it has become reality due to the internet. States saw that they were missing out on sales tax.

 

As a side note, if 2 parties swap cars in Ohio and they are both valued the same, Ohio wants to collect sales tax on the value, of course, they want to collect sales tax from garage sales too....

 

Death and taxes, the only 2 certain things.....

[cstmg8]

It'd take research that I don't have the energy for, but I believe that you are supposed to report any purchases you made (online etc..) on your yearly taxes.

If that's the case, you're supposed to pay one way or another.

On that note, I've never reported anything.

 

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[cstmg8]

Couldn't help it:

 

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[mmrmnhrm]

It'd take research that I don't have the energy for, but I believe that you are supposed to report any purchases you made (online etc..) on your yearly taxes.

If that's the case, you're supposed to pay one way or another.

 

Sorta... and this is how *Ohio* (but not necessarily other states) works:

If you buy something from anywhere, regardless of whether or not the internet was involved, and no tax is charged, you report the purchase on your annual return (it's towards the end of IT-1040 and called "Use tax") and pay your county's sales tax on it. If tax *was* charged, then you have to figure out what percentage, and pay the difference between what you paid, and what your county would have charged. Thus, if you're in a low-tax county that only charges 5%, but the seller was in Cuyahoga and charged 8%, you're done. If the locations are flipped (seller in 5%, you in 8%), then you're on the hook for just the 3% difference.

 

That said, unless you run some kind of business or it's high-dollar, odds are nobody's going to even bother looking. On top of that, large online retailers like Amazon are starting to include the correct tax as part of your order, which while sucky from the "Internet is tax-free!" aspect (not that it ever really was, most states already had these laws on the books but no enforcement mechanism), makes life a lot easier come tax season (I don't have to look back through my credit card statements looking for faded highlighter), and further encourages shopping at already-competitive brick-and-mortar shops (I'm looking at you, Microcenter )

[Trouble Maker]

I'm more curious if there has been 1 single person in the history of that law that has claimed anything in this area on their Ohio state tax form.

[Tractor]

I know of one person who does, but they are weird.

 

Here in SC amazon collects sales tax.

[Turbs3000]

I'm more curious if there has been 1 single person in the history of that law that has claimed anything in this area on their Ohio state tax form.

I bet more than we would think. I could see a good percentage of people putting at least something in that box for fear of being audited.

 

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[Diamonds]

Well, I asked them about it and they said that they checked with their accountant and could in-fact omit the tax:)

[LJ]

Well, I asked them about it and they said that they checked with their accountant and could in-fact omit the tax:)

 

You should definitely give them good reviews. They are eating the tax for you. Arizona's law is very strict that the business is always required to pay tax on every item they sell. It's a business transaction tax out there, rather than an actual sales tax.