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<p>[QUOTE=&quot;medoraman, post: 1269784, member: 26302&quot;]This is the exact position today, as it has been litigated to death, and the Supreme Court has ruled clearly:</p><p><br /></p><p>A state does not have the right to make an out of state firm collect sales tax in its state without nexus. In short, nexus is a physical presence. So, a NC company selling via mail order to a CA customer cannot be forced to collect sales tax for CA. However, every single state with sales tax has also &quot;use taxes&quot;, which if the resident of the state does not have to pay sales tax on the purchase, the taxpyer themselves are liable to pay the use tax. </p><p><br /></p><p>Use taxes compliance audits are on the increase, simply because states want more money. NY found people avoiding the use tax on art work a few years ago, and taxes owed, and penalties and interest, were in the millions. One person even went to jail over it. If you live in a state with sales tax, and the person selling it does not charge you sales tax, you personally are legally liable to pay use tax unless the purchase was tax exempt. Period. If they catch you, (big if I understand), you are in trouble.</p><p><br /></p><p>My background is a CPA with 20 years experience with Sales and Use taxes, and have served on US Treasury panels regarding the IRS. If anyone wants case citations, or more info please just let me know. I am trying to make this post short and sweet.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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