On Line E-Commerce Sales Tax Collection

ruko

I`m curious as to how the sales tax collected from me for an online
sale in another state makes it back to my state? Does it all get back
to my state or are there administrative costs involved? If all the
money does not make it back to my state then I would much rather pay
sales tax directly by purchasing locally and I would certainly avoid
those on line businesses who collect sales tax. 
ruko2007-4-3 9:27:45

USAMS

Hi Ruko, I`ve done a little research on this and I believe it works like this.  If you buy from an online retailer you are not taxed unless you reside in the same state as the business you are buying from.  Where I live for example the State of Washington will require online retailers to collect and pay sales tax for any sold items shipped to a customer within Washington State.  If an item is sold and shipped to a customer out of state, no tax is collected on the sale.  State tax laws vary but this is the case for WA.  Currently there is a group of states working together to figure out how to capture all that lost sales tax revenue so this nice benefit to online shopping may not last for long.

ruko

Thanks for your reply. Here is an example: I live in Minnesota and I
purchased a GPS unit from DeLorme in Maine. I had to include Minnesota
sales tax, 6.5%,  in the payment sent to DeLorme. I know why
DeLorme collects this tax and this is not my question. My question is,
how much of this money gets back to Minnesota from DeLorme in Maine?
There must be some kind of administrative costs involved to transfer
the money back to Minnesota. In other words how much does Maine take
for this service? 

sydni212

My state, Texas, is the same as USAMES. We don`t have to charge taxes to out of state customers. I thought that was across the board. I looked up your state and it is the same. You do not have to charge sales tax to customers outside the state. When buying out of state, you must file the use tax in your state for what you buy. Here is the link http://taxes.state.mn.us/taxes/sales/ta ... on/content /intersales.shtml

Bree

Hi there,
Any business who is selling as interstate or a foreign commerce are liable for sales tax where the product is delivered, and therefore they collect the sales tax based on where you live for the city, county, and state and other special taxes.  Texas has many taxes that a retailer is liable for.  You will be charged the company that collects the sales tax that you paid will be filed to your state on whatever recurrence your state deems necessary.  I have worked with a interstate and foreign commerce where we had sold items and delivered them to a texas resident and were liable for the taxes and the state keeps track of these things.
Bree
Bree

Bree

To answer directly, ALL sales tax collected from you is sent to the state in where you live.
Bree

jomyjk7

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bannerbuzz

sale tax is really very confused us. how we pay it. and its different rules does not know all people. so we need proper information of the paying sales tax





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stan255

According to FindLaw.com:
If an online retailer maintains a physical presence in a state that charges a sales tax on most purchases, then that online retailer must charge sales tax on any items that are sold to customers within the home state.

Another good read about ecommerce sales tax: http://blog.taxjar.com/international-se ... s-tax-u-s/

Cheers,
Stan
Works at http://www.selbys.net/

saravanan

Sales Tax--If your business is run from Texas then Texas is likely the only state you have nexus in and therefore you will owe sales tax on items you sell to Texas customers.