posted
Maybe legal is not the right question but can they actually do this?
isn't this double taxation? I don't plan on telling them, the state can go to hell as far as I'm concerned.
quote:The state says it's time to pay up.
Unable to get widespread voluntary compliance, state residents now will be dunned for sales tax owed on out-of-state, catalog or Internet purchases on their state personal income tax forms.
State lawmakers forced the inclusion of a new line on state income tax returns that will compel taxpayers to fess up how much they owe in avoided state sales tax. For example, New Yorkers who buy clothing in Pennsylvania or other neighboring states where apparel purchases are tax exempt will now be required to report the tax due for their purchases on their state income tax returns.
The rules, adopted this year by the state Legislature, could generate as much as $5 million per year after the upcoming fiscal year, which starts April 1, 2004, said Kevin Quinn, spokesman for the state Division of the Budget.
However, state Assemblyman Robert J. Warner, R-Vestal, said a $25 million figure was used during budget negotiations as the amount lawmakers expected would be generated from the new line. Warner said he voted against the addition to the tax form.
The state is relying on taxpayers to abide by the honor system when they report the figure, causing some to wonder how enforceable the measure is.
"It's probably almost unenforceable," Warner said. "We're counting on the goodwill of people to voluntarily say they purchased goods outside of the state of New York that were not taxed."
The state Tax Department conducts routine and special audits to determine whether individuals don't pay sales or use tax due. The department also has agreements with several other states to provide information on sales to New York residents.
Reporting a false sales or use tax amount could result in accrued interest and penalty fees, in addition to payment of the principal amount due, said Michael Bucci, spokesman for the state Department of Taxation and Finance.
While New York residents have been required for years to account for unpaid sales and use tax when they file their personal income tax returns, many may have failed to because they were unaware of the existing law, said Marisa Butler, a manager at Piaker & Lyons in Vestal. In the past, an individual had to use a separate tax form to file any taxes due.
The new line on the tax form will make taxpayers more aware of the requirement, she said.
"I think people will try to give a fair and honest amount," Butler said.
Robert E. Johnston, 63, of Apalachin said he doesn't plan to keep track of his out-of-state purchases and questions why he should report any New York taxes due.
"Why should I pay New York if I didn't buy it there?" he asked. "New York didn't provide any service."
If taxpayers have no idea how much they may owe in sales tax, the state has created a chart they can use to estimate the amount due.
Though some taxpayers will want to pay their fair share of taxes and will honestly report how much they owe, it's unrealistic to expect the new line to generate the revenue expected, Warner said.
"I'll be surprised if they get $5 million in," he said.
posted
It wouldn't surprise me because everytime I go to my Tax Preparer they always ask me if I have bought something out of state via the internet or over the phone or whatever.
posted
What do you want to bet that the Evil One, Hillary is a big supporter of it? Posts: 878 | From: Hoffman Estates, IL | Registered: Feb 2000
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posted
Yes, the states can do it ............ no it's not double taxation ............. and some states (North Carolina included) are already doing it ........... and not voluntarily ............ it is a required part of the state income tax forms, and if you can not support your numbers with receipts, you must use tax amounts from their charts (which are based upon your earnings)
Gotta love it
-------------------- 2002 SS #3344 (Brutus) Sebring Silver Metallic, M6, CME, SS Grille, Chrome 10 spokes Posts: 655 | From: North Carolina ... the land of Possum & Dumplings | Registered: Jan 2002
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posted
OC is correct. The states can do this and it is not double taxation. In fact, all they are trying to do is collect the tax that should have been paid to them when the consumer purchased the item for use in the state...hence the "use tax". The line to report it is being used on the CA state tax returns for the first time this year. It should be interesting....most people, I'm sure, won't report anything. It's basically the states' way of doing their best to pick up what the consumers owe...so they can balance their budgets and waste away the $$$.
Posts: 942 | From: Santa Barbara and Ventura, CA | Registered: Feb 2000
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posted
We've been paying taxes on out of province purchases since I can remember!
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Wife & Best Friend Mary - copilot. Posts: 5558 | From: Windsor, Ontario. Canada | Registered: Feb 2000
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quote:Originally posted by HailUofM: Yep, they've been doing it in Michigan for years...
And I always claim the whole amoumt living in Michigan
-------------------- SLP#3579 LE#1533 A pair of 35th Anny drinking chairs. Every thing else is just "Fluff" Rio Grande "Swim" Coach Posts: 3091 | From: Canton Mi. | Registered: Oct 2002
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posted
I fully support states collecting taxes on items purchased there...so I think internet sales should be taxed.
I still don't agree with "use tax". If I buy something in PA, why the heck should I pay a tax just to use what I bought?
Posts: 2502 | From: Binghamton, NY | Registered: Feb 2000
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posted
It is essentially the sales tax that you should pay but don’t. The use tax applies to use, storage or other consumption of the same items that are taxed upon sale. It essentially tries to protect merchants from unfair out of state competition but it is also used for some in-state transactions like car sales between private parties.
It usually applies when you purchase an item from an out of state vendor who doesn’t collect state sales tax on the purchase. It also applies for vehicle sales and some other things like retailers using inventory for personal use. It is the same tax rate as the state sales tax.
If sales tax was collected by merchants for internet sales, then the use tax wouldn’t apply to a lot of people. It is basically one of those state conflicts – don’t go buying goods in another state and use them in your home state – or you will be taxed just like you bought the items in your state.
I am more of a free trade type but I guess that’s what happens when you live in a state that you can’t get out of easily. I believe that if I can find a better deal and am willing to travel then why can’t I do so without paying? But I also understand that it is for the smaller states where interstate travel is easy and the issue is commonplace.
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Mark
Posts: 942 | From: Santa Barbara and Ventura, CA | Registered: Feb 2000
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quote:Originally posted by Old Coyote: Yes, the states can do it ............ no it's not double taxation ............. and some states (North Carolina included) are already doing it ........... and not voluntarily ............ it is a required part of the state income tax forms, and if you can not support your numbers with receipts, you must use tax amounts from their charts (which are based upon your earnings)
This sounds very familiar: I swear I've read it somewhere else......
-------------------- Jim Mac '98 Silver SS #108 Posts: 1907 | From: I hope I'm not repeating myself. Again. And Again. Stop picking on me! Waaahhh!! | Registered: Feb 2000
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quote:Originally posted by Old Coyote: Yes, the states can do it ............ no it's not double taxation .... it is a required part of the state income tax forms, and if you can not support your numbers with receipts, you must use tax amounts from their charts (which are based upon your earnings)
Now THAT I'd have an issue with, because why should YOU be the one to provide proof of how much you purchased or the penalty would be to get taxed via a stupid table? Nah, that's crap right there IMO. They'd have to prove you bought stuff out of state and didn't pay taxes on it. If they can't support what I bought with proof, then I don't owe anything as far as I'm concerned. Unless they're tracking your purchases, there's no way they'll really know what and how much you bought out of state. And if they are tracking your purchases online, which they possibly can do according to the homeland security measures, then simply figure out what you want to buy and call them or send them a letter and a check.
I agree, the only way to do it right is for the places you buy from (Wal-Mart online already does this) is to tax you based on your state's tax. Then you don't have to worry about owing YOUR state squat on the backside. I go across the river and buy stuff all the time in Augusta, GA, and I don't ever report that because I paid their local and state taxes on the item, which is equal to the state taxes here. If they tax you AGAIN for the item on some sort of stupid "use" tax, then I'd say that's double taxation and that would damage internet sales, commerce, and businesses in their own states. So how enforcable it is, I'm not sure. South Carolina says if you pay sales tax to another state, cool. But if you don't, then you owe a "use tax" equivalent to the sales tax for that item. I'm quasi-honest about it, though I don't keep exact records, I estimate the taxes I owe (always low, probably). Partial payments are better than none, I suppose.
Posts: 577 | From: Aiken, SC | Registered: May 2002
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FireChicken
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posted
Its like they say, its pretty much unenforceable, they will be relying on the goodwill of people to be honest. Of course, how many of us actually keep reciepts on clothing purchases every year, let alone the ones bought in other states?
Posts: 686 | From: Texas: Hullabaloo, Caneck! Caneck! | Registered: Aug 2003
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posted
FC - If it's an internet purchase or CC purchase, I do keep all of my receipts for nearly everything I buy. Still though, I'll be damned if I'm going to give this state .01 more of my money than I have to.
They don't have access to my credit card bills, and never will. I'd end up in court or jail before I give them any more money.
They passed a new law for "fees" for speeding tickets ect. They now give the court the option of charging what they want up to a certain amount. now a former $200 speeding ticket will push you close to $700. Can you say Lawyer? (fwiw I have not had a speeding ticket in 10 years)
It's time for the state to learn how to operate on a smaller budget. New York has raised every single fee in the past year including taxes.
Posts: 2502 | From: Binghamton, NY | Registered: Feb 2000
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