Sales Tax?

[booyaolian]

I'm debating whether I should purchase a diamond from online jewelers like James Allen or a local diamond jeweler who's got a nice reputation on this board.

All things equal, I will save $300+ on sales tax if I purchase from James Allen since they are a out of state company. Will I still have to pay taxes on my diamond purchase from James Allen somehow, such as when I file my taxes?

Suggestion please!

 

[amc80]

I'm debating whether I should purchase a diamond from online jewelers like James Allen or a local diamond jeweler who's got a nice reputation on this board.

All things equal, I will save $300+ on sales tax if I purchase from James Allen since they are a out of state company. Will I still have to pay taxes on my diamond purchase from James Allen somehow, such as when I file my taxes?

Suggestion please!

Technically you are supposed to claim it and pay the sales tax to your state. But I've never known anyone who has actually done it.

 

[Fly Girl]

I'm debating whether I should purchase a diamond from online jewelers like James Allen or a local diamond jeweler who's got a nice reputation on this board.

All things equal, I will save $300+ on sales tax if I purchase from James Allen since they are a out of state company. Will I still have to pay taxes on my diamond purchase from James Allen somehow, such as when I file my taxes?

Suggestion please!

Technically you are supposed to claim it and pay the sales tax to your state. But I've never known anyone who has actually done it.

It's called a "use tax" and is paid when you file your state taxes.

 

[yssie]

article here: https://www.pricescope.com/journal/internet_and_sales_tax_free_ride_or_not

 

[oldminer]

Everything you buy on-line and have shipped in from out of state that would be taxed in your home state if bought locally is supposed to be reported as Use Tax to the state you reside in so long as it has a state sales tax. Nearly every state has a Sales Tax.

Few people report Use Taxable purchases, but that does not make it right or legal. The mechanism for collecting tax on such sales is going to be developed someday as a ton of revenue these states need is being lost currently. If you want an untarnished reputation in case of a possible future background check it might be best to pay the Use Tax you generate each year. Other wise, you'll join the majority who have not paid and probably won't have a problem.

Since I occasionally collect some sales tax I often also voluntarily pay some Use Tax to my state just to keep the tax man happy and keep the chance of having a bad audit outcome minimal. I just don't need the aggravation or the problem and the tax is essential for the state to provide services we all need and expect.