Talk:Sales taxes in the United States

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[edit] Needs Updates

According to a friend who lives in Washington, this page is not accurate, and requires overhaul and updates. —Preceding unsigned comment added by 132.170.33.246 (talk) 11:10, 30 January 2008 (UTC)

Likely true - Please edit it if you find any errors. This article is a difficult one to keep up to date - in many cases, we rely on editors from each state to notice changes in the tax code and make the needed changes in the article. Morphh (talk) 13:01, 30 January 2008 (UTC)
If you see something that's not accurate then make the corrections and cite your source for the correct data. Marc Kupper (talk) (contribs) 21:58, 7 February 2008 (UTC)

[edit] Out-of-state tax

When you place an order with a company in another state, which tax is applied? -- 80.184.70.185 17:30, 26 September 2005 (UTC)

Neither. There's no federal sales tax, and sales tax in one state does not affect citizens or companies in another. Hence TV ads often say "(State name) residents add (number)% sales tax"; they are required to pay sales tax (if applicable) when selling to residents of their state. However, if a company has facilities in more than one state - e.g. your headquarters are in New York but you have an office or factory in California - the tax would apply for each of those states, I think. I'm mainly adding this so I remember when/if I expand the article, and so someone can refute me if I'm wrong. --Vedek Dukat Talk 22:22, 23 December 2005 (UTC)
This agrees with my experience. In writing a computer program with a sales tax module for Nike (an Oregon company), Nike is obliged to collect sales tax only when it ships to states where it has a retail outlet. EncMstr 05:11, 16 February 2006 (UTC)
These are not really the answer to the question being asked. Yes, technically, you aren't taxed when the order is placed in another state, but rather when the order is delivered. The question is which state tax is applied, and WHEN? The tax assessed to the consumer depends on where the consumer lives, where the goods are to be used, and if such goods are taxable in the consumer's resident state. Thus, a California purchaser of catalog goods from another state, shipped to California (for his own use or as a gift), would have to pay the California tax, on taxable goods, unless the vendor collects it for some reason. This is called "use tax" and typically applies whenever the same goods would have been taxed in California if purchased at local retail (where the retailer is required to collect the tax and submit it to the state on behalf of the consumer). Of course, if you have them shipped to your country house for use in New Hampshire/Alaska/Delaware/Montana/Oregon, there is no tax. ;-)Lupinelawyer 10:48, 15 July 2006 (UTC)
From: [| http://thestc.com/FAQ.stm] most states have what is called a "Use Tax" for when the seller is in a different state. This type of tax is the customer's responsibility to pay but is increasingly being collected by vendors at their behest. "A use tax is a tax imposed by states to collect taxes on sales which do not take place in their state. The tax is meant to insure that all purchases are taxed, whether purchased locally or from out of state sellers." 71.146.130.162 00:22, 11 January 2007 (UTC)
Although this is an old conversation, NY has recently put a law on the books that websites that do business in NYS, even if they have no physical presence, are required to collect taxes from the residents. It's going to court now to determine its legality, but perhaps it should be noted in the article. Heres a source, or you can just Google "Amazon Tax New York" (http://www.nytimes.com/2008/05/02/nyregion/02amazon.html?ex=1367467200&en=0bd37583e0401630&ei=5124&partner=digg&exprod=digg)
Ghostalker (talk) 00:07, 28 May 2008 (UTC)

[edit] Expansion

The information given for the distribution of the 7.25% in California does not agree with the PDF I added as a source documenting how the structure of the tax is criticized. But that PDF may be out of date. I will update this from official BOE sources shortly. -- Beland 23:20, 31 January 2006 (UTC)

Done. Maybe someone will take interest in the other states; this info is pretty easy to find on the web. Personally, I was alarmed at how complicated the California sales tax exemption system is, and how many different groups get special treatment. -- Beland 04:42, 1 February 2006 (UTC)

This entry needs a reference to online sales tax, including how tax is assessed for online purchases for companies in the same state as the purchaser and out of state. —Preceding unsigned comment added by 193.113.48.17 (talk) 19:36, 23 January 2008 (UTC)

[edit] References

I would like to contribute to the referencing of this article. References would be helpful not just to enhance credibility, but to make it easier for future editors to maintain the page. I happen to have a list US State tax department names and links, such as: Nevada Department of Taxation, and a few links to sites with info on all states. There seem to be two approaches. (1) Put a list of all fifty departments and links in a references section at the end. (2) Put the link for each department in the appropriate state section, and create a references section only for links to sites with info on all or multiple states. I propose approach (2). Thoughts?--Niku 01:09, 16 February 2006 (UTC)

I agree. Approach 2 is much more useful. EncMstr 05:07, 16 February 2006 (UTC)

Please see the section below about summary style. Mike Dillon 01:22, 7 May 2006 (UTC)

[edit] Fractions are Ugly

Before I spend the entire night changing the fractions (I changed one section before I realized that they're everywhere), I want a second opinion. I feel that the fractions are ugly, and should be shown as decimals instead. Here's an excerpt from the Florida section, with the second being without fractions:

This is 1% in most counties, ½% in many, 1½% in very few, and ¼% in one county.
This is 1% in most counties, .5% in many, 1.5% in very few, and .25% in one county.

Comments? koolman2 11:07, 22 March 2006 (UTC)

The fractions have the strength of being clearer reading in my computer's default display typeface. But otherwise I agree, the fractions seem old-fashioned, especially shown with a slant line (instead of horizontal) in whatever typeface they're appearing in. In .25%, the decimal is so small, at first glance it looks like 25%, so—at a minimum—I request that those be written 0.25% to make the decimal more obvious. EncMstr 15:11, 22 March 2006 (UTC)
Agreed on the 0.25% and such. I suppose that I'll get started on switching them all over! koolman2 04:13, 24 March 2006 (UTC)
They're all switched now. There weren't as many I thought there were earlier. koolman2 04:26, 24 March 2006 (UTC)


[edit] I want to get something straight

If I live in California, and buy something from another state, the interstate commerce clause will apply, and I would not have to pay any sort of sales tax? --67.49.215.31 04:04, 5 May 2006 (UTC)

to clarify, I am referring to this from Newegg.com:
Sales tax is only required for orders shipping to destinations within our resident states of business. Therefore, all orders shipping to California, Tennessee and New Jersey will be charged sales tax according to the appropriate tax rate. Additionally, all orders shipping to Puerto Rico will be assessed a 6.6% duty tax and a $5.00 handling surcharge.

--67.49.215.31 04:07, 5 May 2006 (UTC)

It depends. I found this, which may be helpful. Check the site out for more information. But I believe this answers your question
A reader sent in the following question to me recently in regards to sales taxes on online sales:

"I buy a lot of stuff on the internet for my business. Recently I bought something in an online auction, 
and when the seller sent me his invoice, he added my state's sales tax to my winning bid. I thought this 
was odd, because the seller's located in another state and I didn't think you had to charge sales tax on 
interstate sales. Is there something going on here I should know about?"

Generally, when you're selling stuff--online or otherwise--you charge sales tax only when the buyer 
is located in the same state as you. Under current law, which may be changing soon (see below), you're not supposed to charge sales tax on sales to buyers who live in other states.

There are two exceptions to this, however, and your seller probably fell into one of them:

First, if the seller has an office, warehouse, distribution facility or retail location in your state, 
the seller may have to charge you sales tax because he is legally "doing business" in your state. 
This is why, when you buy something from a mail order catalogue, the invoice form sometimes says 
"residents of States A, B and C, please add sales tax to the total." The mail order company has 
its retail or warehouse outlets in States A, B and C and is required to collect sales tax from buyers 
located in each of those states, regardless of the actual location your order is shipping from. [1]
This is of course not for purchases made in person in another state. If you live in Lake Tahoe CA and buy your camera from a Best Buy in Lake Tahoe NV, you will be charged the Nevada state sales tax, because you're doing business in the same state as the company. --MPD01605 06:17, 5 May 2006 (UTC)
The question is whether "I would have to pay any sort of sales tax," not whether the seller is required to collect any tax. Yes, of course you have to pay California tax because you are a California resident receiving or bringing goods into California, but the over-the-counter seller typically doesn't care where you're from, and the internet/phone/mail-order seller only cares if he's also licensed to do business in your state. When the seller collects the tax for you (under his own state or national laws, to his own local treasury), it's called "sales tax" (or sometimes VAT or GST abroad) but when you pay it directly to your state's treasury it's called "use tax", and is the same amount as the sales tax you would have paid locally, reduced by any sales tax the seller may have collected. So, in this sense, it is "a sort of" sales tax. These laws apply regardless of where the goods are purchased (another state, overseas), even if the seller is not (or, under ICC, cannot be) required to collect it. Thus the 6.5% Nevada tax only partially covers the 7.25% tax owed by the consumer in California when he returns home with the goods. Lupinelawyer 10:48, 15 July 2006 (UTC)

[edit] Summary style

Hi there. I've been working on the California section of this page and I believe the bulk of the section needs to be moved into its own article (namely Sales and use tax in California). I saw the discussion above about where to include references and I think that the use of summary style is actually the right way to go. That is, the references should go in the complete article for the state and this page should have only summaries for states with lengthy discussions. The {{details}} template can be used to link to the detail articles consistently. Using summary style will allow this article to remain browsable while providing an easily accessible place to find more detailed information about those states that have more information (including legal references, history, etc).

I am bringing this up for discussion because I thought it would be an interesting alternative and because I am waiting for a response from the California State Board of Equalization about a couple of fact checks notices I added. I plan on making the change once I have their response and would appreciate nobody moving the California information until the BOE has had a chance to look at it (I know I should have used the "permanent link" feature). The note I sent to the BOE can be found here. Mike Dillon 01:18, 7 May 2006 (UTC)

[edit] Ohio and no sales tax on food

I notice that grocery/food sales tax exemptions are listed for states in which they occur, and while Ohio has no tax on food, this exemption is not mentioned in this article. Ohio has a sales tax on "service" rendered for food served in restaurants which is equivalent to what would be taxed as if there were such a tax on food, but groceries (and takeout, I believe) are exempt in Ohio. Please research this and edit the article appropriately if necessary.

[edit] Sales tax on food in Colorado

hi, I think there should be a difference noted between prepared food (i.e. restaurant), and food that you buy in a grocery store, which is not taxed.--Pueblonative 14:57, 19 July 2006 (UTC)

[edit] Income tax

I've removed all references to this or that state not having income tax. It is totally irrelevant to this article. Mike Dillon 15:15, 23 July 2006 (UTC)

[edit] Sales tax in New Jersey

The 7% Sales Tax has NOT yet taken effect, Currently the Governor and the legislature are working on an exact date that the new tax will take effect. Please do not make any reversions or changes back to 7% until an official announcement and you can provide a link to that announcement. Until then the sales tax in New Jersey is still 6%. Misterrick 03:52, 24 July 2006 (UTC)

The sales tax in New Jersey is certainly in effect! I paid for lunch today and was charged 7% sales tax. I'll be correct this inaccurate information by that I previously made. Misterrick 18:04, 28 July 2006 (UTC)

[edit] Website with all data centralized

I propose the creation of a website with sales tax data down to the state, county, zip, and city level, which is FREE, and updated by the community (wikipedia style). I know there are several commercial companies out there that charge an arm and a leg, but I want to do it for free--since most of the work appears to be manual labor of rate lookups. Maybe we could even convince localities to publish their data there. Perhaps we could offer a paid version (e.g. API for automatic updates) if ads doesnt cover server fees. Just an idea.

[edit] advertised price and sales tax

It is customary to advertise the net price (before, excluding [sales] tax) in the US, contrary to other parts in the world, which advertise the gross price (after, including ]sales] tax). Example: A 99 cent burger is approx. 1.08$ in New York (and can therefore not be paid with a dollar bill), but a 99 cent burger in Europe is actually 99 Euro-cent.

Why?

I believe many overseas visitors might find this aspect interesting.

--Soylentyellow 23:35, 7 November 2006 (UTC)


[edit] Indian Reservations

I know some indian reservations don't have to charge a sales tax on things sold on the reservation, should this be mentioned? - 71.34.10.45 01:04, 13 February 2007 (UTC)

[edit] Duluth Sales Tax

I'm adding the local sales taxes for Duluth Minnesota, since it is one of the larger cities in MN and has an additional local sales tax. There is a 1% sales tax on taxable items, and an additional 2.25% on "served food and beverages." Feel free to complain, adjust or remove if necessary :) —Preceding unsigned comment added by 65.102.107.60 (talk) 17:29, 23 October 2007 (UTC)

[edit] Tourists Reclaiming Sales Tax

I've been told that Tourists can reclaim sales tax, but have searched the internet, but get referred to the Income Tax filing.

The wikipedia section doesn't cover this, and was wondering if there is a site or form to fill out?

--71.126.175.16 19:57, 25 October 2007 (UTC)

Speaking from my own experience, many times upon presentation of an Oregon driver's license, merchants will waive the sales tax at the time of purchase. This usually means more paperwork and time before getting out of the store, so it's really only worth it for larger purchases. 192.55.52.2 (talk) 10:23, 26 January 2008 (UTC)

Regarding Indiana sales tax on food items needs to be expanded to properly reflect the wider range of food items that are not taxed. As an example, a chocolate cake prepared by the grocer's bakery would not be a taxible item when NOT served with eating utensils. —Preceding unsigned comment added by 76.252.23.25 (talk) 21:27, 18 January 2008 (UTC)


[edit] Where do I report that the preview is incorrect?

Preview shows indented sub-bullets, but saving the page results in no indentation. For an example, see section on CA statewide tax. I'm using IE6, if that's pertinent.