I’m stuck on stupid here…how would your state know that you purchased something online from outside the US?
Received a Bill for State Tax on An Amp Bought in Canada Last Year
Wow! The envelope said “Dept of Revenue” so I figured it may be my car tags due. I opened the envelope to find a statement that I owed $665 for “use tax” on an amp I bought last year in June. Shocked is an understatement. Yes, I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax. However, the amount they are basing it on is over double what I paid for the amp. But had to send it to Don Sachs for repair a few months later. So I wonder if they are seeing that as a separate purchase rather than a repair. They even charged me $43 interest which is more ridiculous IMO.
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow
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Maryland also has a "use tax" that applies to any purchases made outside the state in jurisdictions that do not charge tax. So, if I take a short trip to Delaware, and buy a $10,000 from Overture AV, and bring it back to Maryland, technically I owe $600. If I do an internet order, and don't pay tax on the order, again, I technically need to pay Maryland 6% of the invoice total. I do not think they actively try to track such purchases, but I suspect that orders coming from out of the U.S. might be easier to track, as the U.S., I believe, tracks the shipments, and probably relays to info to states if they desire. |
grannyring
But if you buy a used amp from Joe aphile and bring it back you owe no tax. Correct?Under Tennessee rules, it looks like he'd owe the Use Tax. I cannot fathom any other answer based on the realities involved with trying to collect such a tax and the fact that nobody pays nor keeps track of these used transactions.Obviously some entity is monitoring the transactions, because the OP already received a Use Tax bill from the state. |
FWIW I have been sick for 2 weeks with a cold and haven't felt like dealing with it. However, I did talk to the auditor who indicates that the use tax can apply to whatever they want it to apply. I have sent a receipt for the amp which I purchased which is what I expect to be taxed for $2600 vs $6700. which will lower the bill. If lucky, she will drop it. But ...who knows. I'll keep you posted. |
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