Companies are required to charge sales tax to out of state customers based on either the number of sales to that state or a certain total dollar amount that people from whatever a state have spent. So for companies who maybe don’t sell to a lot of Californians, and when whatever they DO sell falls below a certain threshold, then they aren’t required to collect sales tax. Sorry, I’ve long forgotten the numbers, but I’m sure that they’re easily found.I live in California where sales tax is charged. What I don’t understand is how or why some vendors in other states charge me sales tax, supposedly because my order is being shipped to a state that charges sales tax. Then I go to a different vendor, buy a $2000 air gun and they don’t charge sales tax for on line orders also being shipped to California. I’ve asked about it over and over when I’m charged sales tax and the vendor always tells me a law was passed and they are liable for the sales tax in my state. How is it that other vendors are not liable for the sales tax? Certainly if these vendors were really liable, the IRS would be all over them. 9.25% on a $2150 air gun is almost $200! It makes me wonder if the vendors charging sales tax are really paying it to the state or keeping it for themselves. I’m not making accusations! I simply don’t understand why some charge sales tax and others don’t. Not charging sales tax is an unfair advantage for some retailers and why I almost alway order expensive items from out of state by those that don’t charge it.
Anybody know why some vendors are supposedly liable and others are not or how that actually works?
Have a great weekend!
Stoti
Personally, I’ll always search out a company that doesn’t charge me California’s usurious sales tax. An extra $200 tacked onto a $2000 purchase is not something I look forward to spending. If I can avoid paying taxes for social programs I don’t support, then by God I will.
And just so you know, you can thank Wayfair for this.
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