Sales Tax and Leon Mege?

[Lady Lulu]

Does anyone know if you pay sales tax with Leon Mege? I know most vendors will not charge sales tax if they ship the merchanidise to you and you live out of the state in which they do business. Normally, it wouldn''t be big deal to me, however, I think my potential purchase through him will be significant dollars. Paying no sales tax is an advantage that would be significant savings. I am not a resident of the state of New York.

 

[AndyRosse]

I don''t know the answer to your direct question about LM, but I can tell you that if you don''t pay tax to him, you have to report it on your tax return for your state and pay appropriate state taxes.

 

[diamondseeker2006]

Michelle, this may be technically true. However, I''d rate it about equal with people paying taxes on yard sale proceeds. The transaction is not reported to the IRS, therefore, one can choose to report it or not.

 

[WinkHPD]

Date: 5/6/2006 10:38:02 AM
Author: diamondseeker2006
Michelle, this may be technically true. However, I''d rate it about equal with people paying taxes on yard sale proceeds. The transaction is not reported to the IRS, therefore, one can choose to report it or not.

Yet. Eventually the states will be able to require vendors to release names and dollars to the tax authorities. Penalties and interest will be huge. Vendors will not choose to go to jail rather than release the names. In many states you already have a line on your income tax form to report yourself with, and you are committing fraud if you do not, which increases your penalties if you are caught.

The lost revenue is in the billions of dollars per year catagory, the states will not let it go for long.

Wink

 

[diamondseeker2006]

Yes, I am interested to see when ebay gets hit with having to report all sales. That will significantly change ebay and I am sure increase costs to the consumer as it will for sales of any kind. But I would have to assume that when the tax laws change to require all sales to be reported by the vendors to state tax authorities, we''ll know that. I agree that it will come eventually. As they say, can''t escape taxes or death forever.

 

[Lady Lulu]

Wow. I didn''t realize it could be such a serious thing. If that is the case, then why wouldn''t you pay sales tax to the vendor''s state instead of your own - by way of tax return filing - , since that is where the transaction originates?

 

[diamondseeker2006]

It is the state you live in that wants your tax money. I'd be very curious to know how many people here have bought diamonds online out-of-state and reported it. Maybe we could do a poll?