Online Sales Taxes is being collected

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jason812
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Re: Online Sales Taxes is being collected

#16

Post by jason812 » Fri Oct 11, 2019 5:10 pm

mot7981 wrote:
Fri Oct 11, 2019 5:04 pm
Frankly, I'm surprised it took the state this long to go after this pot of gold. We're talking about a lot of $$ to add to the state's coffers... which they'll spend wisely no doubt.
I'm sure they will use it to lower our property taxes. :banghead:

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Re: Online Sales Taxes is being collected

#17

Post by jmorris » Fri Oct 11, 2019 5:28 pm

03Lightningrocks wrote:
Fri Oct 11, 2019 3:15 pm
The customer is and has always been responsible for paying state sales tax on certain products. The merchant is responsible for collecting those taxes from the customer and forwarding them to the state. It has always been the customers responsibility to pay the taxes if the merchant is not collecting them. Technically, anyone buying and not sending the taxes in has been guilty of tax evasion. There is almost no way to enforce the law from the customer paying in perspective. I have also been guilty of not paying the taxes on items purchased online. I am not even sure how one would go about it if they chose to. But it does not change the fact that in essence, we are stealing from the state when we don't pay up.

Buying from an out of state merchant does not make the purchase "Tax Free"... but most of us act like it does.
The actual term for the tax on out if state purchases is Use Tax. You file with a form 01-156.

What is Use Tax - A tax, complementary to the sales tax,
imposed on taxable goods and services that are purchased,
leased or rented for personal or business use, storage or
consumption in Texas on which Texas sales or use tax has
not previously been paid. Texas use tax is due regardless if
another state's sales or use tax has been paid.

https://comptroller.texas.gov/taxes/pub ... 94-171.php
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03Lightningrocks
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Re: Online Sales Taxes is being collected

#18

Post by 03Lightningrocks » Fri Oct 11, 2019 5:35 pm

Texas_Blaze wrote:
Fri Oct 11, 2019 4:12 pm
03Lightningrocks wrote:
Fri Oct 11, 2019 3:15 pm
The customer is and has always been responsible for paying state sales tax on certain products. The merchant is responsible for collecting those taxes from the customer and forwarding them to the state. It has always been the customers responsibility to pay the taxes if the merchant is not collecting them. Technically, anyone buying and not sending the taxes in has been guilty of tax evasion. There is almost no way to enforce the law from the customer paying in perspective. I have also been guilty of not paying the taxes on items purchased online. I am not even sure how one would go about it if they chose to. But it does not change the fact that in essence, we are stealing from the state when we don't pay up.

Buying from an out of state merchant does not make the purchase "Tax Free"... but most of us act like it does.
The merchant isn’t responsible for collecting the taxes. The merchant is responsible to pay taxes on what’s sold. You and I just happen to get the privilege of covering the merchant’s tax bill.
It is the merchants responsibility to collect it from the customer. Then forward those taxes to the state of Texas.

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03Lightningrocks
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Re: Online Sales Taxes is being collected

#19

Post by 03Lightningrocks » Fri Oct 11, 2019 5:45 pm

jmorris wrote:
Fri Oct 11, 2019 5:28 pm
03Lightningrocks wrote:
Fri Oct 11, 2019 3:15 pm
The customer is and has always been responsible for paying state sales tax on certain products. The merchant is responsible for collecting those taxes from the customer and forwarding them to the state. It has always been the customers responsibility to pay the taxes if the merchant is not collecting them. Technically, anyone buying and not sending the taxes in has been guilty of tax evasion. There is almost no way to enforce the law from the customer paying in perspective. I have also been guilty of not paying the taxes on items purchased online. I am not even sure how one would go about it if they chose to. But it does not change the fact that in essence, we are stealing from the state when we don't pay up.

Buying from an out of state merchant does not make the purchase "Tax Free"... but most of us act like it does.
The actual term for the tax on out if state purchases is Use Tax. You file with a form 01-156.

What is Use Tax - A tax, complementary to the sales tax,
imposed on taxable goods and services that are purchased,
leased or rented for personal or business use, storage or
consumption in Texas on which Texas sales or use tax has
not previously been paid. Texas use tax is due regardless if
another state's sales or use tax has been paid.

https://comptroller.texas.gov/taxes/pub ... 94-171.php
Sales and use tax are basically one and the same. Some services are taxable like products. Sales and Use tax is the wording to describe what we are calling sales tax on this thread. It has nothing to do where the item or service is purchased from.

The funny thing I did not realize but see on the link you posted is that shipping is supposed to be taxed also. I don't think I ever noticed being charged tax on shipping.

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03Lightningrocks
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Re: Online Sales Taxes is being collected

#20

Post by 03Lightningrocks » Fri Oct 11, 2019 5:55 pm

jason812 wrote:
Fri Oct 11, 2019 5:10 pm
mot7981 wrote:
Fri Oct 11, 2019 5:04 pm
Frankly, I'm surprised it took the state this long to go after this pot of gold. We're talking about a lot of $$ to add to the state's coffers... which they'll spend wisely no doubt.
I'm sure they will use it to lower our property taxes. :banghead:
Your property taxes are a local tax, so no it is not likely.

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03Lightningrocks
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Re: Online Sales Taxes is being collected

#21

Post by 03Lightningrocks » Fri Oct 11, 2019 5:59 pm

If you look up sales tax rates from across the country, Texas is actually on the lower side when one adds in what the limit is on what local authorities can add for local revenue. Many of the highest total sales tax rates states also have an income tax. I keep holding my breath on a state income tax. I think if the politicians in Texas were not so afraid of the huge public reaction to a state sales tax, we would already have one.

https://www.salestaxinstitute.com/resources/rates


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Re: Online Sales Taxes is being collected

#22

Post by K.Mooneyham » Fri Oct 11, 2019 7:13 pm

03Lightningrocks wrote:
Fri Oct 11, 2019 5:59 pm
If you look up sales tax rates from across the country, Texas is actually on the lower side when one adds in what the limit is on what local authorities can add for local revenue. Many of the highest total sales tax rates states also have an income tax. I keep holding my breath on a state income tax. I think if the politicians in Texas were not so afraid of the huge public reaction to a state sales tax, we would already have one.

https://www.salestaxinstitute.com/resources/rates
And I personally hope they stay afraid of public opinion. If I wanted to live in a state that taxed me to death, I would have stayed in California went I "retired" from the Air Force.

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03Lightningrocks
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Re: Online Sales Taxes is being collected

#23

Post by 03Lightningrocks » Fri Oct 11, 2019 8:45 pm

K.Mooneyham wrote:
Fri Oct 11, 2019 7:13 pm
03Lightningrocks wrote:
Fri Oct 11, 2019 5:59 pm
If you look up sales tax rates from across the country, Texas is actually on the lower side when one adds in what the limit is on what local authorities can add for local revenue. Many of the highest total sales tax rates states also have an income tax. I keep holding my breath on a state income tax. I think if the politicians in Texas were not so afraid of the huge public reaction to a state sales tax, we would already have one.

https://www.salestaxinstitute.com/resources/rates
And I personally hope they stay afraid of public opinion. If I wanted to live in a state that taxed me to death, I would have stayed in California went I "retired" from the Air Force.
Aman to that! Nobody likes to pay any taxes but at least in Texas we are better off than many many states. It is one of the reasons our economy continues to grow while the rest of the country suffers. Businesses are tripping all over each other to move here.

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Flightmare
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Re: Online Sales Taxes is being collected

#24

Post by Flightmare » Fri Oct 11, 2019 11:07 pm

03Lightningrocks wrote:
Fri Oct 11, 2019 5:59 pm
If you look up sales tax rates from across the country, Texas is actually on the lower side when one adds in what the limit is on what local authorities can add for local revenue. Many of the highest total sales tax rates states also have an income tax. I keep holding my breath on a state income tax. I think if the politicians in Texas were not so afraid of the huge public reaction to a state sales tax, we would already have one.

https://www.salestaxinstitute.com/resources/rates
There is a ballot measure this November to amend the state constitution to prohibit a state income tax in Texas. Proposition 4 is the ballot measure. Voting FOR the measure is a vote to block state income tax in the state constitution.
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03Lightningrocks
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Re: Online Sales Taxes is being collected

#25

Post by 03Lightningrocks » Fri Oct 11, 2019 11:11 pm

Flightmare wrote:
Fri Oct 11, 2019 11:07 pm

There is a ballot measure this November to amend the state constitution to prohibit a state income tax in Texas. Proposition 4 is the ballot measure. Voting FOR the measure is a vote to block state income tax in the state constitution.
That is good to know! I am glad you posted this. This is a good way to help insure politicians don't try to shove an income tax at us in the future. I do believe I will be casting my ballot on this one. :txflag:

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Re: Online Sales Taxes is being collected

#26

Post by jmorris » Sat Oct 12, 2019 8:24 am

03Lightningrocks wrote:
Fri Oct 11, 2019 5:45 pm
.....

Sales and use tax are basically one and the same. Some services are taxable like products. Sales and Use tax is the wording to describe what we are calling sales tax on this thread. It has nothing to do where the item or service is purchased from.

The funny thing I did not realize but see on the link you posted is that shipping is supposed to be taxed also. I don't think I ever noticed being charged tax on shipping.
Oh, I agree completely, but like knowing a bullet is not the round, I think it's needful to know the proper terminology.
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Re: Online Sales Taxes is being collected

#27

Post by jason812 » Sat Oct 12, 2019 9:11 am

jmorris wrote:
Sat Oct 12, 2019 8:24 am
03Lightningrocks wrote:
Fri Oct 11, 2019 5:45 pm
.....

Sales and use tax are basically one and the same. Some services are taxable like products. Sales and Use tax is the wording to describe what we are calling sales tax on this thread. It has nothing to do where the item or service is purchased from.

The funny thing I did not realize but see on the link you posted is that shipping is supposed to be taxed also. I don't think I ever noticed being charged tax on shipping.
Oh, I agree completely, but like knowing a bullet is not the round, I think it's needful to know the proper terminology.
I don't care what you call it. We all pay too much of our money to taxes.


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Re: Online Sales Taxes is being collected

#28

Post by RicoTX » Sat Oct 12, 2019 9:48 am

jason812 wrote:
Sat Oct 12, 2019 9:11 am
jmorris wrote:
Sat Oct 12, 2019 8:24 am
03Lightningrocks wrote:
Fri Oct 11, 2019 5:45 pm
.....

Sales and use tax are basically one and the same. Some services are taxable like products. Sales and Use tax is the wording to describe what we are calling sales tax on this thread. It has nothing to do where the item or service is purchased from.

The funny thing I did not realize but see on the link you posted is that shipping is supposed to be taxed also. I don't think I ever noticed being charged tax on shipping.
Oh, I agree completely, but like knowing a bullet is not the round, I think it's needful to know the proper terminology.
I don't care what you call it. We all pay too much of our money to taxes.
Absolutely Correct in my opinion

It would be different if they didn't waste so much of it.
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03Lightningrocks
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Re: Online Sales Taxes is being collected

#29

Post by 03Lightningrocks » Sat Oct 12, 2019 10:12 am

I would definitely agree we pay too much federal tax. Well the few of us actually paying them. 44% of the people in the United States pay zero federal taxes. This is usually the group who cries the most about taxes because they see them come out of their check each week. They always love spending that refund check in February and March, but they still pretend they pay federal taxes. It cracks me up. State taxes on the other hand, in Texas at least, are mostly paid by those using resources. Regardless of income, you pay the same percentage as everyone else using the same resources. Texas State taxes are really not that bad when one considers the infrastructure it provides us all. Someone has to pay for all that stuff. Nothing in life is free. No matter what democrats tell people.

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Re: Online Sales Taxes is being collected

#30

Post by ScottDLS » Sat Oct 12, 2019 10:58 am

Texas_Blaze wrote:
Fri Oct 11, 2019 4:12 pm
03Lightningrocks wrote:
Fri Oct 11, 2019 3:15 pm
The customer is and has always been responsible for paying state sales tax on certain products. The merchant is responsible for collecting those taxes from the customer and forwarding them to the state. It has always been the customers responsibility to pay the taxes if the merchant is not collecting them. Technically, anyone buying and not sending the taxes in has been guilty of tax evasion. There is almost no way to enforce the law from the customer paying in perspective. I have also been guilty of not paying the taxes on items purchased online. I am not even sure how one would go about it if they chose to. But it does not change the fact that in essence, we are stealing from the state when we don't pay up.

Buying from an out of state merchant does not make the purchase "Tax Free"... but most of us act like it does.
The merchant isn’t responsible for collecting the taxes. The merchant is responsible to pay taxes on what’s sold. You and I just happen to get the privilege of covering the merchant’s tax bill.
And this is where we have the disconnect with an out of state seller with no presence (nexus) in Texas or use of Texas resources being required to pay tax on something sent to the state. How about if I physically go to OR or NH (no state sales tax) and buy some expensive clothes and tires for my car, then take them back to Texas. Is it the store's responsibility (assuming the company has no Texas presence) to collect Texas tax? It shouldn't be. Nor should it be if they happen to ship it to Texas. The "brick and mortar" store is sitting in Hew Hampshire using up NH resources and infrastructure. What is the rationale for collecting Texas sales tax? Why is this different for an out of state store that ships to Texas, but has no physical (or fiscal ;-) ) presence in Texas. You could argue for tax on the shipping (to the extent makes use of Texas infrastructure). Now the purchaser who returns the items to Texas has always been responsible for paying the "use" tax on the items. What about Oklahoma with 5% vs. 8.25% tax? Well you're supposed to the pay the difference that you didn't already pay to OK. I, of course, always remit the difference after my trips to OKC, just like I unload and place my handgun in the trunk before I pass within 1000' of a school zone where I don't have a state issues license and am relying on reciprocal recognition of my out of state license. Three felonies a day. :rules:

And shouldn't Texas give me back 1% on things I buy in California and take back here?
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