+1 to Al's post. The State of NJ has in the past acknowledged that it is difficult for them to enforce the use tax laws, and in essence in its tax materials has (in the past at least) tried to get on our conscience by saying it's the right thing to report your out-of-state purchases and pay the use tax.
Would you be more likely to buy new gear out of state if there was no sales tax
There is a retailer that advertises in the Absolute Sound that you can buy gear from him without paying sales tax. He is located in Delaware where they don't have sales tax. Being from California that would save me 9.5 percent off the top and that is without even negotiating. I don't know if he charges for shipping or not but it seems like it could be beneficial.
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Al has used the correct word ... it's a Use Tax and is due the state Here in CT this is the way the law reads From the CT State Revenue Dept. "The Customer’s Responsibility"
My general understanding is If a out of state seller or vendor has no physical presence in the state that the sale is being made to ... the seller/vendor is not require to collect the tax But if the seller or vender has any physical presence in that state that the sale is being made to in the form of a outlet .. store ..warehouse or even a office ... then the seller is required to collect the tax Again that is from the CT State Revenue Department Al thanks again for the clarity ... |
I have a friend of mine that is a Mcintosh collector and every couple years he buys a piece or 2 to ad to his collection. He always buys out of state to avoid the sales tax. He say's there is no paper trail when you buy outside out of state. He said the only problem he ever has is that some Mcintosh dealers will not sell out of state. He says sometimes he has to make several calls to find a retailer that will sell to him. |
Most manufactures will not allow a dealer to sell an item if there is a dealer in the state you live in. They have ways of getting around that like selling an item as a demo. There is no tax when you buy out of state. You can be a Dudley-Do - Right and pay the tax to the state of your residence when you do your taxes! |
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