Online purchase tax?

[Igotarock]

I have recently been looking for an upgrade diamond for my wife. Many of the places I have been looking are out of state from California my question is do you have to pay and out of state taxes? And if so two what state? Never done this before so just curious.

 

[sledge]

If the retailer you purchase from does not have a presence in your state then they do not have to collect sales tax at the time of the sale. However, you have the personal burden to report internet purchases on your tax return and pay those taxes at that time.

So legally, you delay the tax. However many people choose to never report and consequently never pay. However, that is a risk you must evaluate for yourself to determine how you will handle.

 

[Igotarock]

That sucks, thanks for the info.

 

[Johnbt]

California calls it a 'use tax' if you'd like to google it.

Virginia law also requires payment of a 'consumer use tax' on item purchased in person in any state that does not charge sales tax. Fwiw.