States More Strict on Online Sales Tax
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credit: timsamoff
The Internet has long been a haven of availability, variety, and tax-free shopping. When purchasing any big-ticket item, many residents across the country choose to shop online because, even after shipping, tax-free items are far less expensive than their local counterparts. However, states are slowly cracking down on tax-free Internet buys.
Even though consumers don’t pay sales tax on online purchases upfront, all taxpayers are supposed to report unpaid sales tax on their state income tax forms, identifying it as “use tax.” Though many Internet shoppers don’t report this use tax, states are beginning to grow stricter on their tax reporting policies.
Though this new attitude may seem that it’s coming at the most inopportune time — at the same moment that many taxpayers are feeling the pinch — states are also feeling the stress of smaller budgets having to stretch farther. And looking at the balance sheets, many states know that their missing budget dollars lie in their residents’ purchases from online stores, like book lovers’ favorite Amazon.com.
Though many taxpayers are unaware that they should pay this tax, states stress that “use tax”, the sales tax on Internet purchases, is not a new tax. It is the state’s right to charge this tax and, though it may seem like a pain, those uncollected taxes will help fund education, maintain roads, and provide important emergency services. So though it might seem like a unnecessary pinch on your wallet, reporting your use tax can go a long way to help you and your neighbors.
Tags: Internet | Online Shopping | Sales Tax | Saving Money | Shopping | Tax
This entry was posted on Friday, May 2nd, 2008 at 4:00 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
