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BillP BillP is offline
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First recorded activity by BoatBanter: Oct 2007
Posts: 122
Default And this is the reason...


"Calif Bill" wrote in message
...

It is the identical item as a Sales tax. Sales tax is collected by an
entity with a resale license. When it is collected by the state is a "Use
Tax". In Calif if you buy a used car from a dealer, he collects the sales
tax on it for the state. Buy the same car from a private party and the
state collects the same amount of money as a "use tax" when you transfer
the vehicle to your name. You are supposed to remit the use tax when you
file your state income tax form on out of state purchases.


While in the end they may be the same to your pocketbook, they are not the
same when it comes to online retailing- which is what this thread is about.
An out of state online retailer will never collect a "use tax" on a
transaction.