Sales tax avoidance

[Oswegatchie]

It seems like avoiding sales taxes is getting harder by the day. I was wondering if you typically pay sales tax on your shipping or your billing address? Since I will be going through both Montana and Oregon soon (neither have a sales tax, yet), if I have a bunch of items I am having shipped (example:Amazon or other online stores like LLBean), if I have them sent to either of these states for deliver and pickup, do I have to pay any sales tax? We are just becoming full timers and are looking to save where feasible.

 

[CyrusL]

Sales tax is calculated based on the delivery address. You won't pay sales tax if there is none in the state it's being delivered to.


Sent from my iPad using Tapatalk

 

[caretaker]

CY, i thought it was dependent apon billing address.

 

[WalkaboutTed]

I'm not going to touch the ethical discussion of tax avoidance. But here is a way you can possibly avoid sales tax on Amazon items. If you want to get something on Amazon, click on the Amazon Prime item. The shipping is usually free, but sales tax is often inevitable. So then look at the page with the item and there is usually something like "also available " at a number of different places. Go through those options, then look at the list with shipping costs. Often they are the same price and no shipping and the only reason when they aren't up first is because Amazon makes more money on "Amazon Prime " items. After you have found an alternate source for the chosen item, put it in your shopping cart and then click to complete your purchase. DO NOT buy it yet! Once you are at the penultimate step of buying the item, the itemization will show any shipping price and sales tax, if any.

At that point, you can decide if the alternate source for the item is the most cost - efficient. I know this is more work, but if you are in a high sales tax state, it can be almost 10 percent saving.
Ted

 

[Oswegatchie]

CY, i thought it was dependent apon billing address.

I am as confused as ever, as it seems many of us are.

 

[Almost There]

I used to have to have 7 different sales tax licenses, one for each state that I conducted business in each year.

I shipped product regularly to both states that I held a license in and ones that I did not.

The sales tax I had to charge was dependent on where I was shipping it to, not where the billing address was for the charge card nor where I was at that particular moment.

If I was shipping to a state where I did not have a sales tax license then I did not have to charge sales tax.

 

[CautionToTheWind]

http://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html

 

[vfourmax]

As far as current law is concerned if the company you are purchasing from has any type of physical presence in the state you live and are shipping to then if that state has a sales tax then the seller has to charge you sales tax. Just like the above example where in my state Amazon has distribution warehouses then they charge my states sales tax on anything sold BY AMAZON.

If though another seller even though listed on the Amazon site has the same item and does not have that physical presence in the state they will not charge you the sales tax. Legally anything you purchase that you do not pay sales tax on at the time of purchase you are supposed to report it as tax owed on your state income taxes.

 

[lenny flank]

Meh, sales taxes help pay for "civilization", and I *like* civilization.

 

[XFILE36]

Which states don't have sales tax?

 

[lenny flank]

Which states don't have sales tax?

I know Alaska doesn't. It has no income tax either. The state makes enough from oil taxes to meet its budget.

 

[highdesertranger]

I know Oregon has no sales tax, there are a few more, others will chime in. highdesertranger

 

[Richard]

Which states don't have sales tax?

Alaska, Delaware, Montana, New Hampshire, and Oregon

Source: https://www.thebalance.com/states-without-a-sales-tax-3193305

 

[mnpaul]

Minnesota: No sales tax on clothing or food.  If the food is prepared or candy then tax