Re: ADI vs. Internet Pricing

["Doug L" <vssdoug@xxxxxxx>]

In California and I suspect many other states, you are required to pay a use
tax on products purchased in other states/countries if the sales tax isn't
collected by the seller. The onus being on the buyer to pay the tax.

http://www.boe.ca.gov/sutax/isvdprog.htm

I believe California also is mining the information from the customs
declaration forms collected at airports/ports from its residents returning
from overseas trips.

Doug L

--

"Bob La Londe" <nospam@xxxxxxxxx> wrote in message
news:44a281c1$0$9903$88260bb3@xxxxxxxxxxxxxxxxxxxx
>
> There are some Federal regulations that prohibit states to enact any regs
> which inhibit interstate trade.  In general this prohibits the charging
> and collection of sales taxes on interstate sales.  However states find
> innovative ways to try and get around that.  One Arizona tries is to
> charge a "USE" tax and make the buyer responsible for it.  Many things are
> impossible for them to colelct on, but for something that is registered
> like a boat or car they make you show the original sales receipt.  If you
> did not pay sales tax where you bought it they make you pay use tax when
> you register it.  Personally I think its a deliberate attempt by the state
> to circumvent Federal regs, but hey they are getting away with it.
>
> Another thing Az does is call their sales tax a "transaction priveledge
> tax."  Where this becomes an issue is in selling to federal agencies.
> Federal agencies are exempt by federal law from state and local sales
> taxes. Arizona doesn't charge a "sales" tax and makes the seller
> responsible for all transaction taxes regardless.  Due to competitive
> pressure they finally did allow an exemption so that sellers only have to
> pay half the sales tax on "transaction priveledge tax" to federal
> agencies.  Still, somebody selling to a local fed agency from out of state
> has a built in 3%-5%(apx) pricing advantage over a local business.
>
> Taxes suck.  "Its about plucking the maximum number of featehrs from the
> goose with a minimum of squaking."  (Hamilton I think)
>
> Its no big surprise that Arizona is a rogue state.  We started out that
> way from our very 1st admission into the union.  We can remove any elected
> offical by popular refferendum.  This includes judges.  The fed objected
> to this in our constitution so we removed it, joined the union, and then
> put it right back in.  Yes, a judge who makes an unpopular decision could
> possibley be removed by popular vote in Arizona.
>
>
> --
> Bob La Londe
> Fishing Arizona & The Colorado River
> Fishing Forums & Contests
> http://www.YumaBassMan.com
>
>
>
> --
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