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Has anyone had any issue with their state 'Use' tax?

Posted on 3/11/13 at 2:04 pm
Posted by RickAstley
Reno, Nevada
Member since May 2011
1995 posts
Posted on 3/11/13 at 2:04 pm
I ordered several things off of Amazon last year and my orders did not include sales tax for my state. Does anyone have any experience with correcting this on their return?
Posted by eng08
Member since Jan 2013
5997 posts
Posted on 3/11/13 at 5:00 pm to
I thought not having to pay sales tax was one of the benefits of amazon along with 2 day shipping?
Posted by LSURussian
Member since Feb 2005
126960 posts
Posted on 3/11/13 at 5:10 pm to
quote:

I thought not having to pay sales tax was one of the benefits of amazon

It is. It's just illegal...
Posted by meldawg399
nola
Member since Oct 2008
1168 posts
Posted on 3/11/13 at 5:38 pm to
technically you're supposed to file a sales and use tax return with the state of LA as well as the parish you reside in.
Posted by eng08
Member since Jan 2013
5997 posts
Posted on 3/11/13 at 7:28 pm to
Did not know that...
Posted by RickAstley
Reno, Nevada
Member since May 2011
1995 posts
Posted on 3/11/13 at 10:05 pm to
Yea I have several purchases from last year through Amazon that I am going to have to review. My state tax return was my saving grace on the hit I am getting from the federal tax return. The Use tax will claim a chunk of my state return due to all of my online shopping. Subscribing to Amazon Prime pretty much sealed the deal for all of my shopping last year to occur through Amazon.
Posted by RickAstley
Reno, Nevada
Member since May 2011
1995 posts
Posted on 2/4/14 at 9:23 am to
Bumping an old thread rather than making a new one since I am once again curious about the Use tax line.

When you make a purchase online and they do not charge sales tax, do they send a record to the state of the sale? Last year I calculated what I owed and I filled it in. I plan to go through the process once more, though its a tempting field to not fulfill the full sales tax value of what I owe from online shopping.
Posted by dcrews
Houston, TX
Member since Feb 2011
30163 posts
Posted on 2/4/14 at 9:49 am to
quote:

I thought not having to pay sales tax was one of the benefits


A lot of people think this.

Another interesting tidbit, if you buy something from Parish A, but live in/will be using said product in Parish B, you may owe the difference in sales tax to your Parish (or conversely you can receive a credit I believe if Parish A sales tax is higher than Parish B's)

Someone please correct me if I'm wrong.

ETA: A little helpful information

LINK
This post was edited on 2/4/14 at 9:53 am
Posted by Teddy Ruxpin
Member since Oct 2006
39553 posts
Posted on 2/4/14 at 10:03 am to
quote:

A lot of people think this.

Another interesting tidbit, if you buy something from Parish A, but live in/will be using said product in Parish B, you may owe the difference in sales tax to your Parish (or conversely you can receive a credit I believe if Parish A sales tax is higher than Parish B's)

Someone please correct me if I'm wrong.

ETA: A little helpful information



Ya...I'm just going to go ahead and ignore all that.
Posted by dcrews
Houston, TX
Member since Feb 2011
30163 posts
Posted on 2/4/14 at 12:21 pm to
quote:

Ya...I'm just going to go ahead and ignore all that.




I don't adhere to it. The amount of $$$ involved is immaterial, especially considering the time I'd have to take to keep track of it all.
Posted by CubsFanBudMan
Member since Jul 2008
5060 posts
Posted on 2/4/14 at 12:51 pm to
In general there is no record sent to the state. The online retailers claim that it would be too hard/expensive to track all of the taxing jurisdictions that they ship to. I do remember hearing about the state of Louisiana getting a hold of Thompson's Cigar Co's mailing list. They then looked at the returns filled for the customers to see if any use tax was paid. If none was paid, that triggered an audit. I don't think the state could prove how much use tax was due. I think there was another mail order company that they also did this with, but don't remember the name. This was at least 6 years ago.
Posted by RickAstley
Reno, Nevada
Member since May 2011
1995 posts
Posted on 2/4/14 at 1:35 pm to
Thank you for the feedback. I find the Use tax an interesting topic. It seems like few pay attention to it on their return, or they play dumb when asked about it.
Posted by agdoctor
Louisiana
Member since Dec 2004
3142 posts
Posted on 2/4/14 at 2:29 pm to
quote:

Someone please correct me if I'm wrong


You are wrong. Tax is calculated at point of sale. A car is a movable so the tax due is based on your home address and not where you buy it. One of my favorites is on delivered items. If I buy and pick up furniture in say Lafayette the tax will be calculated there at close to 10%.If I buy it and they deliver to my rural address the tax is calculated at my home which is 7.55%. Most places know this but dont volunteer that info.
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 2/4/14 at 2:34 pm to
quote:

It seems like few pay attention to it on their return, or they play dumb when asked about it.


it's one of those things that no one would ever self-report but if you get audited I'm sure they would hit you with it. I doubt it's material unless you're ordering thousands of dollars worth of merchandise online
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