Out of state sales tax

[Walker]

I'm buying a set of wheels and tires out of state (+free shipping), but the guy told me they "had" to add sales tax to the price. I thought anything bought across state lines was immuned from sales tax.



What's the laws on retail tax?

 

[illflem]

If you live in a state with sales tax the mail order outfit has to charge you your state's sales tax only if they have an outlet in your state, even if the product is shipped to you from another state. They never charge you the shipping state's tax. It used to be that you didn't pay sales tax period if the product was shipped from out of state but the law changed. A law was in the works to require mail order outfits to charge your state's tax on all items shipped, I don't think it passed but heard some large mail order companies were doing it voluntary. If you reside in a state without sales tax and can prove it with a drivers licence, etc you don't have to pay sales tax when in another state. At least it works that way for the states surrounding Montana. There is a Federal excise tax charged on tires but it's usually included in the price.

 

[WDaniels]

Not all states will honour the "I have no sales tax" concept. In fact I know of only a couple. Washington state is one of them. The ones that don't honour it that I travel through is OK, NM, TX,CO, UT, MO, ID, CA, MD, DC,WV. Those states I've traveled through and tried to buy stuff and they said that they still had to charge the tax. Mayber I just didn't do it right.

WD

 

[illflem]

Warren, lots of times the kid at the register doesn't know jack about taxes unless they're in a town right next to a non-tax state. Sometimes even the people who live in a non-tax state don't know about it. If you ever have to go any further than the kid at the counter it probably isn't worth it, you'd probably have to hire a lawyer to figure it out. I bought a tax free Banks kit in CA with my out of state ID but it took them quite some time to figure out it was ok. This was in '95 though, things very well may have changed.

This sort of interesting, businesses in Missoula, MT used to run ads in Spokane around Xmas touting come to Montana for tax free shopping. Spokane countered it by waiving sales tax in the two weeks before Xmas.

 

[Walker]

Ok. Here's the whole story. I'm in NM, and I bought a used car in FL. I want to get a new set of wheels and tires on it before I drive it back. So, I called ahead to get prices etc. and told them I'd pay with a cc over the phone. He said it'd be $xx. xx + tax. I said I thought I didn't have to pay the tax. He said (asked someone) "yes, I did. "



What's the right answer?

 

[Steve St.Laurent]

Actually, legally you are required to pay your states sales tax even on goods bought out of state (mail order, etc). The difference is if they have an outlet in your state then they are required to collect the taxes. If they don't have an outlet in your state then you are required to file a sales and use tax form and pay the taxes yourself. Now that said noone does it. The only people that use those forms are business owners like myself that are using product ourselves that we had purchased for resale. That's the use tax part of the form. The sales tax part of the form is for anyone who bought something mail order out of state from someone that doesn't have an outlet in your state (hence the taxes weren't collected). In your case it sounds like they shouldn't be collecting taxes from you in FL. But more important than the wheels is the sales tax on the vehicle itself - your state may require you to pay the sales tax on it when you register it so make sure you aren't paying it in FL.



When I bought my truck used in Ohio they charged me the michigan sales tax and then gave me a check for the full amount of that tax (so it could be a part of the financing and so I could pay it when I registered it). However, I lucked out in that they registered it temporarily in Ohio for my drive home and when I went to register it in Michigan they said that since I had already registered it in Ohio I had paid the taxes there so I didn't have to pay them again. I wasn't about to tell them differently.

 

[Walker]

There is NO outlet here in NM. So, as I understand it, Florida can't charge me any sales taxes right? It's up to me to file them when I get back.



What should I say if they still try and charge me?

 

[illflem]

Walker, the way you explained it it sounds like you are buying the tires in FL and installing them there, don't think that qualifies as mail order. You'll have to pay the tax if they aren't shipped out of FL.

 

[Vaughn MacKenzie]

Oregon Shoppers in Washington

I've always wished this state would charge sales tax no matter where someone is from for the simple fact it slows up the checkout process to claim exeption. The out-of-stater must claim their exemption before the purchase is rung up, and then a log filled out with driver's license number, etc. etc. at checkout. I just love getting in line behind one of these (no offense, we love you Oregonians, it would just be nice to tax ya! ) What kills me is this people will claim their exemption on piddly $1 or $2 dollar purchases!



The budget-cruched Washington State government kindly reminded us in a recent media blitz that we should be good little residents when we go to Oregon to buy stuff and remember to return the appropriate tax to the proper officials when we get home



The DJs had fun with this one. One commented "Any time we buy something on our next vacation to Florida I'll be sure to mention 'Gee, I'm from Kennewick Washington, would you mind charging me my local sales tax on this transaction?'"



Vaughn

 

[Walker]

Good point illflem. That sounds right to me, since I do plan on putting them on there before I leave. But, that's only if a certain person I've talked to agrees to buy the existing wheels and tires. If not, I plan on having them shipped home (no charge) and only then would I be exempt.



Thanks