Question on U.S. State sales tax

Unless the business has a nexus (does business physically) in your state. For example if you are an out of state coin dealer that sets up at coin shows in CA, if you set up more than a certain number of days in a years time then you have established a nexus in CA and you then have to collect and remit to CA sales taxes on coins sold to CA citizens even if you do not sell the items in CA.

 

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As the laws are wrote, a good that is used for the manufacture of another taxable good, isn't taxable, only the finished product is. Cattle feed isn't taxable, but the retail sale of the cow is.

 

I know that. I thought I made that point earlier in this thread. Sorry if I wasn't clear.........

 

At least based on my experience with internet purchases, if you purchase from a company that's not based or has a physical presence in your state, then you won't be charged a sales tax. Those sales taxes are meant to be for those in the state, whether you're passing through by traveling or if you're a resident.

 

No state has the right to control or tax interstate commerce. I believe that was the ruling of the Supreme Court. So if you aren't receiving delivery within the state in which it was sold, then that state has no jurisdiction.

 

Click through nexus. Let's say ABC retailer (a remote seller located in Maine) pays a blogger located in North Carolina a fee to add a click through to ABC's on-line retail site. ABC retailer has now created nexus to the State of North Carolina. 25 states have adopted some form of click through nexus.

The underlying principle is based on the idea the blogger is acting as a 3rd party sales agent in the State of North Carolina for ABC.

https://blog.taxjar.com/states-sales-tax-click-thru-nexus/

 

Very few on-line businesses collect sales tax for other states. However, if they have locations in states A and B, you live in state B but order from state A, then you may be hit with the tax. In general, it's too much of a bookkeeping headache for a business to keep track of tax laws in 49 states bessides their own.

 

As of 2011 the United States had 9998 sales tax jurisdictions throughout the 45 States that imposed a sales or gross receipts tax.

 

Amazon was supposed to be collecting sales tax if they sell an item to a person living in a state with sales tax. The same goes for coin dealers. they should be collecting sales tax for the state they ship coins too.

 

Not with how the law is currently. If the seller has no presence or connection to the state the item is shipped too the buyer is supposed to report it on their taxes and pay the sales tax then. They all have clear requirements for when it is up to the seller to be doing it and in most cases for buyers unless they're buying off of Amazon or another national chain the responsibility falls on them.