States seeking sales tax for Internet purchases on clarkhoward.com

Purchases you make on the Internet are tax free, right? Wrong! The states are at it again trying to find new sources of tax revenue as we stare down a recession. They've now turned to trying to get the word out that you're legally required to pay sales tax on Internet purchases -- unless, of course, you live in a tax-free state. That's news to most people.

The courts have decided that web merchants are not responsible for collecting taxes unless they have a domicile in the state where the purchaser lives. But you still owe the tax. North Carolina has been aggressive about trying to collect. Some states are even participating in cooperative efforts where they'll rat you out to other states. We're not talking about something you buy for $12 on Amazon; we're talking about something you might buy for $12K online. 25 states now have a line on their income tax forms to collect sales tax on Internet purchases you've made over the past year. Consumers are expected to keep a log of all their e-commerce transactions and then report them!

What others are saying

Interstate taxation
Interstate commerce is not to be regulated or taxed. Regulation of interstate commerce is the pervue of the Federal government. What about those who relocate to a new state home? What about the age of the item? Depreciation schedules? I live in NC and filed for the taxes on a laptop I bought in Miami. Who works for whom?
By Mike @ 05/08/08 01:36:15 PMreport abuse
TIME FOR MORE TEA OVERBOARD
The Feds were kind enough to realize that internet commerce needed a shot in the arm since it has a significant disadvantage to a brick and mortar store. So Congress passed year after year a ban on taxing the internet commerce. I guess Congress stopped passing this ban if states now are trying to gouge us all again. It does not make any sense for states to charge their huge sales taxes since most people have to use local commerce for most of their purchases like for gasoline and bread and milk and other groceries. Internet purchases are usually rare and will become even rarer if this tax continues to be an albatross on back of us overtaxed citizens.
By Mike @ 05/05/08 03:22:56 PMreport abuse
Tax garbage
Truthfully why should an internet sale have an advantage over other physical stores in an area. If an internet store is located in a particular state, I am suprised that they wouldn't already charge the local state sales tax. If I travel to SC, I have to pay there sales tax when I buy something. However, there is one thing you can do whenever politicians behave like this. VOTE. Vote their worthless carcass out of office. Don't complain unless you know your congressman's record and vote accordingly.
By Justin @ 04/18/08 03:03:19 PMreport abuse
tax on internet
why cant they just let the people who shop on line alone.goverment are going to push people into nut houses.most people are just getting bye on how they are living and we need to be taxed again and pay more for gas on weekly increases,no pays are going up.whats next,tax me on how many pets i own.whats this world coming too.its getting crazy,stop the world i want to get off!!!!!!
By vince weinhardt @ 04/17/08 10:10:45 PMreport abuse
Had to do this
This is one thing I hated when I was living in SC--the "Use Tax" that I was expected to keep track of myself for internet purchases. The first year it appeared, I had no idea it was coming and was completely stymied as to how they expected people to know what to pay. Sure, I have a general idea of how many purchases I've made during the year, but some of those were on sites that had physical locations in the state, so they had already collected tax. What about eBay? It's just an online garage sale, right? But some of those sellers are professionals. I probably paid them more or less what I owed them, I just figured I'd give them five bucks which would cover the tax for $100 worth of purchases during the year, but really, who knows?
By JB @ 04/17/08 11:56:18 AMreport abuse
Consumer Abuse
This is just another example of consumer abuse. What are our elected representatives doing to stop it? Remember, we have a chance to get even on Election Day.
By PJ @ 04/17/08 05:34:47 AMreport abuse

Interstate taxation

Interstate commerce is not to be regulated or taxed. Regulation of interstate commerce is the pervue of the Federal government. What about those who relocate to a new state home? What about the age of the item? Depreciation schedules? I live in NC and filed for the taxes on a laptop I bought in Miami. Who works for whom?

By Mike @ 05/08/08 01:36:15 PMreport abuse

TIME FOR MORE TEA OVERBOARD

The Feds were kind enough to realize that internet commerce needed a shot in the arm since it has a significant disadvantage to a brick and mortar store. So Congress passed year after year a ban on taxing the internet commerce. I guess Congress stopped passing this ban if states now are trying to gouge us all again. It does not make any sense for states to charge their huge sales taxes since most people have to use local commerce for most of their purchases like for gasoline and bread and milk and other groceries. Internet purchases are usually rare and will become even rarer if this tax continues to be an albatross on back of us overtaxed citizens.

By Mike @ 05/05/08 03:22:56 PMreport abuse

Tax garbage

Truthfully why should an internet sale have an advantage over other physical stores in an area. If an internet store is located in a particular state, I am suprised that they wouldn't already charge the local state sales tax. If I travel to SC, I have to pay there sales tax when I buy something. However, there is one thing you can do whenever politicians behave like this. VOTE. Vote their worthless carcass out of office. Don't complain unless you know your congressman's record and vote accordingly.

By Justin @ 04/18/08 03:03:19 PMreport abuse

tax on internet

why cant they just let the people who shop on line alone.goverment are going to push people into nut houses.most people are just getting bye on how they are living and we need to be taxed again and pay more for gas on weekly increases,no pays are going up.whats next,tax me on how many pets i own.whats this world coming too.its getting crazy,stop the world i want to get off!!!!!!

By vince weinhardt @ 04/17/08 10:10:45 PMreport abuse

Had to do this

This is one thing I hated when I was living in SC--the "Use Tax" that I was expected to keep track of myself for internet purchases. The first year it appeared, I had no idea it was coming and was completely stymied as to how they expected people to know what to pay. Sure, I have a general idea of how many purchases I've made during the year, but some of those were on sites that had physical locations in the state, so they had already collected tax. What about eBay? It's just an online garage sale, right? But some of those sellers are professionals. I probably paid them more or less what I owed them, I just figured I'd give them five bucks which would cover the tax for $100 worth of purchases during the year, but really, who knows?

By JB @ 04/17/08 11:56:18 AMreport abuse

Consumer Abuse

This is just another example of consumer abuse. What are our elected representatives doing to stop it? Remember, we have a chance to get even on Election Day.

By PJ @ 04/17/08 05:34:47 AMreport abuse

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Apr 16, 2008 -- States seeking sales tax for Internet purchases

What others are saying