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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.

taters
davehrab's avatar
davehrab
380 posts
 

You can buy just about anything new from anybody in any state and not pay the taxes directly to the out of state seller

But it is absolutely your responsibility and obligation to report to your state any and all out of your state purchases in a specific calendar year  that you did not pay taxes on to the out of  seller so your home state can send you a bill for the amount of taxes due on those purchases

If you don't you are in defiance of the law

How many ads have you seen that say if you are a resident in the same state as the on line seller is you have to add/pay that states sales taxes to the purchase

Are you a law violator for the sake of your hobby ?????




czarivey
5,946 posts
 
I definitely would especially if the sales taxes are highly unjustified. There's no violation of any laws. There’s also no customs between the states.
almarg's avatar
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almarg
9,670 posts
 
There's no violation of any laws.
Yes there is.  For example, according to this reference provided by the State of Pennsylvania's Department of Revenue, "all states that impose sales tax also impose use tax," use tax being applicable to purchases of items or services that would be subject to sales tax in the purchaser's home state but for which sales tax is not collected by the seller.  In many states purchases subject to use tax must be declared on the purchaser's state income tax return each year, and the use tax must be paid in conjunction with that return.

Regards,
-- Al
 

rcprince
3,073 posts
 
+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.
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