Tax Evasion on Internet Purchases?

[ronbeau]

How about used gear sold by an individual? I had always thought if used gear was bought from an individual, whether in state or out of state- no tax was required. I'm guessing here - does anyone know the used gear rule?

In Massachusetts you still have to pay sales/use tax on used products. For example, if you buy a used car you must pay the sales tax when the car is registered and the sales tax is charged for the amount you paid or the fir market value whichever is higher.

This is interesting since if I bought and registered the car in Massachusetts when I was brand new I paid the sales tax on the full price of the car. I guess the exception is if I traded another car into the dealer when buying the new car I only pay sales tax on the net amount I paid to the dealer (new car price - trade-in amount).

 

[barkeep]

Being somewhat of an anarchist I am very happy to avoid paying use tax on any item that I purchase online. Personally I feel that the taxes that we do pay should not be used to prop up other countries, or to bail out badly managed company's and do not like the idea of giving billions of our hard earned tax dollars to a country in an attempt to wipe out illegal drugs when the leaders of those countries pocket huge portions of that money for their own personal use. When this country decides to use the tax money that is collected the way it was intended ie, social security for the older people, paying the salaries of the military personnel and government workers, and providing the basic services that we are supposed to be getting instead of wasting it then I will start paying the sales and or use tax on items I purchase online.

 

[DennisS]

So what you're saying is essentially "if you're dumb enough to obey the law..." right?

Aye matey, us swashbucklin pirates laugh at sales tax on our internet purchases. We've been known to pillage a free shipping offer and UPS fears our overweight packages.

 

[Brian Sharpe]

How about used gear sold by an individual? I had always thought if used gear was bought from an individual, whether in state or out of state- no tax was required. I'm guessing here - does anyone know the used gear rule?

I have no idea about rules in the US but in Ontario there is no requirement to collect sales taxes on the private sale of used personal property (one exception being used motor vehicles). Retailers selling used taxable goods are required to collect taxes.

 

[mike_s]

anything I've bought in a store that is used, you have to pay normal retail taxes for. (which is kinda double taxation as it was already taxed once).

If you buy from a private party (such as a classified ad), I don't know of a way that they can collect tax on that, unless you claim it on your income tax. I still don't know that it's taxable even then.

 

[PhilEllis]

anything I've bought in a store that is used, you have to pay normal retail taxes for. (which is kinda double taxation as it was already taxed once).

If you buy from a private party (such as a classified ad), I don't know of a way that they can collect tax on that, unless you claim it on your income tax. I still don't know that it's taxable even then.

In Alabama, used gear is taxable. Trust me, I know. lol.

Phil Ellis
Discount Scuba Gear at DiveSports.com - Buy Scuba Diving Equipment & Snorkeling Equipment

 

[chip104]

I will not "vote" on the poll because you have excluded the entire world (not that we are in a global environment or a board with members from around the world ) but will say adamently that I have internet purchases shipped via different methond that I know will get me around specific fees. The government gets too much of my money as it is and IMHO I do not see enough in return.

Heck, I even won against the government and had them pay for damages to my car that occurred on a poorly kept highway. That was a victory of epic proportion in my books.

It's a gift, isn't it?.... And use USPS when able to! Pretty much any Canadian who orders online from the US know those ones.


But if you know of any other tricks please PM me.

 

[peteytheweasel]

I believe that if the government spent more time actually spending the money they get wisely they could save much more than they are trying to collect.

 

[Dive-aholic]

Interesting. I've been doing my own taxes for years using TaxCut. I don't recall ever being asked by the program about a use tax. How can I file it if there's nowhere to file it?

 

[vladimir]

When this country decides to use the tax money that is collected the way it was intended ie, social security for the older people, paying the salaries of the military personnel and government workers, and providing the basic services that we are supposed to be getting instead of wasting it then I will start paying the sales and or use tax on items I purchase online.

I agree, except for the Social Security--I don't need it. So I will start paying tax when they start spending it only on what I think is important. Why should my tax money go to a bunch of dead-weight senior citizens--except for my mom?