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<p>[QUOTE="medoraman, post: 1640775, member: 26302"]Every state in the country that levies a sales tax also has a use tax, subject to the same regulations of the sales taxes. If you buy something and the seller did not charge sales tax, you as the purchaser legally owe use tax on the purchase. Now, pragmatically, do most people self report these purchases and pay the use tax? No, they don't. States know this, and its just easier to force more sellers to collect sales tax, so that is why they are going after sellers more than buyers. However, that does not change the fact that someday a state could pull your purchase records from Paypal or another source and charge you back use taxes. </p><p><br /></p><p>My fear of the future is two fold. Either the Constitution regarding nexus and interstate commerce will be trampled and sellers will have to collect sales taxes for all states, or states will start to seriously crack down on use taxes using their new access to Paypal and all credit card records in this country. I am pretty sure one or both will happen, since the states are just as broke as the Feds are.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1640775, member: 26302"]Every state in the country that levies a sales tax also has a use tax, subject to the same regulations of the sales taxes. If you buy something and the seller did not charge sales tax, you as the purchaser legally owe use tax on the purchase. Now, pragmatically, do most people self report these purchases and pay the use tax? No, they don't. States know this, and its just easier to force more sellers to collect sales tax, so that is why they are going after sellers more than buyers. However, that does not change the fact that someday a state could pull your purchase records from Paypal or another source and charge you back use taxes. My fear of the future is two fold. Either the Constitution regarding nexus and interstate commerce will be trampled and sellers will have to collect sales taxes for all states, or states will start to seriously crack down on use taxes using their new access to Paypal and all credit card records in this country. I am pretty sure one or both will happen, since the states are just as broke as the Feds are.[/QUOTE]
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