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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
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
3,071 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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davehrab
380 posts
 

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"


"In cases where the online retailer does not have to collect sales tax, it is the customer’s responsibility to pay the tax—in which case it is known not as a sales tax but, rather, a “use tax.” According to guidance from the DRS, “Common purchases that are subject to use tax would be supplies or equipment purchased by Internet or mail order sales since the vendor is rarely required to collect sales tax.”

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 ...

taters OP
1,149 posts
 
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.

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yogiboy
5,679 posts
 
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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