tierney@fortune.UUCP (05/18/84)
#R:dual:-52000:fortune:29600004:000:1687 fortune!tierney May 18 10:41:00 1984 >Can someone enlighten me as to what the actual law on sales tax is. The >question is the following: when purchasing an item (that is not exempt for >some reason) from a third party WITHIN your own state, you pay sales tax on >the purchase. .... >So, ladies and gentlemen, can some legal wizard explain why some out-of- >state transactions involve the payment of sales tax and others do not? > Mats Wichmann > Dual Systems Corp. > ...{ucbvax,amd70,ihnp4,cbosgd,decwrl,fortune}!dual!mats ---------- Ok, I'll give it a shot (because I heard an interview with the local honcho of the Cal. Board of Equalization yesterday on KCBS). Yes, if you buy a taxable item out-of-state, you should pay the state the sales tax, because our tax is a "use tax." The out-of-state party does not have to collect the tax, it is not his responsibility because he is not a California business. Of course, if he does collect the tax, you don't have to pay the state. Interesting notes: If you buy a car out of state, in, say Oregon, AND THE CAR STAYS IN OREGON FOR AT LEAST 90 DAYS, you need not pay California use tax on it!! (the above question was specifically answered by the state honcho). While ordering food in a <INSERT NAME OF BAD FAST FOOD JOINT> restaurant, when they ask "For here or to go?" for here means (or SHOULD mean) pay sales tax, BUT "to go" (again, SHOULD) mean - no sales tax. Charlie Tierney -------------------------------------------------------------- { hpda harpo ihnp4 cbosgd } !fortune!tierney DEC { decvax !decwrl !amd70 } !fortune!tierney Berkeley { ucbvax !amd70 } !fortune!tierney