Online State Tax

[Zappy]

Hello,

I'm purchasing something online at IDJ and I live in Illinois. My invoice is charging over 8% for sales tax, and I am totally okay with paying it as long as this is not an error. I have never had to pay tax for out of state diamond jewelry, but I wouldn't be surprised if things have changed. I'm having a hard time finding information on this exact situation online, so I figured I would reach out to see if any of you have recently made a similar purchase.

Thanks in advance!

 

[the_mother_thing]

@Zappy Extra extra ... read all about it

 

[princessandthepear]

I believe that new laws regarding online state sales tax collection became effective in January 2019. I purchased a diamond in January and was charged state sales tax in addition to the jewelry's listed price.

 

[Zappy]

Thanks! I just thought I should double check before I pay. I found some information about an upcoming law in Illinois, and I read about NY residents paying online, but I had trouble finding anything about this specific situation.

I have had a long day, which landed me with a mushy brain tonight. I appreciate your help.

 

[WinkHPD]

Many states have now passed Financial Nexus laws. For example, in California, it started as a $100,000 sales limit to create a financial nexus. Then it was raised to $500,000. Illinois, I believe is $100,000. Oklahoma is very jealous of those lost tax dollars, their financial nexus is a low $10,000.

It is complicated to keep track of. Fortunately there are software packages that track these things for us and let us know when we need to sign up and start collecting.

Wink

 

[Tacori E-ring]

I had to pay tax with them too. I live in WI.