Out of state mail order and sales tax

[RootSkier]

I just ordered something from a small store in ID, delivered to MT. They charged me sales tax. Is that wrong? I thought that was the whole point of mail order.

Maybe I just feel violated because we don't have sales tax in MT and I always forget that most states do.

[Squatch]

yeah, interstate commerce is outside the realm of state sales-tax.

that is bullshit, you should complain.

[RootSkier]

I don't think they were being malicious or anything...I think they probably just don't do a lot of mail order. I will call them. (And I am pretty sure the girl who I talked to and wrote a little note with my shipment put some X's and O's after her name...damn! )

[skiing-in-jackson]

if the parent corporation has an office in the state in which you reside, they are theoretically doing business in that state and sales tax will be charged.

You should have not been charged sales tax.

I'd call em on it, because many times they probably won't file it as "sales tax" collected and it will turn into an additional 5% (or so) profit margin.

Worth a letter to the ID secretary of state? probably not. But depending on the value of the purchase it may be.

One more thing to consider. I purchased a table over the phone in ID and had it shipped to WY. The friggin' furniture store send a letter to the WY commerce dept and filed for some kind of excise tax- which I had to pay in WY!!!

[lemon boy]

Root- Unless there is something "else" going on like you're taking delivery in ID somehow then no, you shouldn't have been charged sales tax.

Squatch- That is not an accurate assessment of the interplay between the commerce clause and the sales taxes.

Skiing-In-Jackson- Yes, but they'd have to charge MT tax (MT= no sales tax)

Lemon Boy's ULTRASIMPLIFIED 50 state non-specific rule of thumb for individuals and their state's sales/use taxes when buying tangible personal property and/or taxable services:

1. Find out what the sales/use tax rate is at your house*
2. If you go to a Brick & Mortar in your state and buy something and pay sales tax, don't worry.
3. If you go to another state and buy something at a B&M in that state and the rate is higher than #1, don't worry.
4. If the rate in #3 is lower than #1, you technically owe use tax (in most states**) on the difference between the rate you paid and #1
5. If you buy from the internet/catalog and are not charged any tax technically you owe #1 (again in most states**)
6. If you buy from the internet/catalog and are charged some random rate and it turns out to be your state, don't worry. If it is another state you shouldn't pay that rate but are instead on the hook for use tax at the rate in #1.

A handy resource for finding info on your state: http://www.taxsites.com/state.html#links <http://www.taxsites.com/state.html>


*if you're buying a plane or a boat that may not necessarily be there it might be different but as a practical matter this would be your use tax rate.
**A two minute phone call to your state's DOR will learn you if they actually expect you to pay use tax as an individual if you were not charged the right sales tax.

[skiing-in-jackson]

Bravo!!!!!!!

B' I ani't payin' mo than I hafta.