Do dealers in the US charge tax on purchases if you do not live in the state the business is in? I wanted to order from a place in California but site wants to charge sales tax. It’s no big deal if they have to, just not sure how this works, or if the state requires it for all transactions, of if the law requiring tax on all online sales passed.
I’m still going to order so it’s basically a moot point, it just got my curiosity up.
Typically, if a retailer has a physical presence in your state, either with retail stores, mall kiosks or distribution warehouses, then they are required to collect sales tax. Conversely, users who make untaxed internet purchases have the option of reporting their transactions on their tax returns to their state revenue dept. which will assess a use tax to compensate for the uncharged sales tax. Not sure how often that gets done. At least that’s the way it works in Ky. As an eBay seller, I am required to collect sales tax on any in-state sales, but not on out of state sales unless they exceed a huge threshold.