# I owe a California Use Tax? WTF?!!! **URL:** \ **Category:** The BBQ Pit\ **Created:** [July 17, 2010, 9:57pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063 "2010-07-17T21:57:12Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![Martini\_Enfield](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/martini_enfield/32/11123_2.png) [@Martini\_Enfield](https://boards.straightdope.com/u/Martini_Enfield)\ **Post date:** [July 20, 2010, 1:05am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/81 "2010-07-20T01:05:01Z")
> [@Rumor\_Watkins](#): > > I’m not saying they don’t have the right, but they come off as worse-than-Americans when they pretend to not know how it works in other systems or it’s above their mental capacities to at least comprehend the whys of the regime. I’m not pretending not to know how it works- I’m genuinely baffled as to why you’d owe sales taxes in your local state on something you purchased elsewhere; as in, “Why isn’t there a “Duty Free Allowance” for interstate purchases of a personal use nature clause in the tax legislation of the relevant states?” I mean, if I (as an Australian) travel overseas and purchase a digital camera worth (say) $100, I don’t have to pay any taxes or duty on it when I return. But what you’re telling me is that if you, as an American, travel to Canada and buy a digital camera for $100, you’ll owe sales taxes on that camera when you return home (depending which state you live in), despite it being purchased in a different freaking country. Surely most people- regardless of which part of the world they’re from- can see that’s not a particularly reasonable state of affairs, and wonder why it’s allowed to continue? ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [July 20, 2010, 3:23am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/82 "2010-07-20T03:23:56Z")
> [@Martini\_Enfield](#): > > I’m not pretending not to know how it works- I’m genuinely baffled as to why you’d owe sales taxes in your local state on something you purchased elsewhere; as in, “Why isn’t there a “Duty Free Allowance” for interstate purchases of a personal use nature clause in the tax legislation of the relevant states?” > > I mean, if I (as an Australian) travel overseas and purchase a digital camera worth (say) $100, I don’t have to pay any taxes or duty on it when I return. But what you’re telling me is that if you, as an American, travel to Canada and buy a digital camera for $100, you’ll owe sales taxes on that camera when you return home (depending which state you live in), despite it being purchased in a different freaking country. > > Surely most people- regardless of which part of the world they’re from- can see that’s not a particularly reasonable state of affairs, and wonder why it’s allowed to continue? One reason it’s been allowed to continue is because until recently it wasn’t enforced except on large purchases such as cars ( if I buy a car in NJ and register it in NY, I will have to pay NY sales tax on the car minus a credit for whatever tax I paid in NJ) and obvious fraud. In the last few years, states have begun adding a line on tax returns for use taxes with a small “safe harbor” amount depending on income- I think mine was $75. Another reason is that although people always talk about use taxes being due on out-of-state purchases, that’s not really accurate in my state. Use taxes are due whenever the seller does not collect NYS sales tax or collects sales tax at a rate lower than the rate in the county where the item will be used. This includes purchases of goods made out of state or out of the country, but it also includes - purchases within the state from nonlicensed vendors - mostly sales by individuals - purchases on Indian reservations - services provided within the state by either out-of-state contractors or nonregistered individuals But probably the most important reason use taxes exist is because no state wants to make it legal for its residents and businesses to avoid state sales taxes and thereby give them more of an incentive to purchase goods and services from out-of-state businesses and lot of residents don’t want to give that incentive either. I don’t know how many different taxing jurisdictions you have in Australia, but I can get to six different states and a few Indian reservations within a few hours and if it wasn’t for the use taxes, I could probably legally avoid paying sales tax on most items- for example, if I buy furniture in Massachusetts to be delivered to NY, I will not be charged the Massachusetts sales tax and unless the company has a location in NY, I won’t be charged NY taxes either. Different jurisdictions tax different items ( for example clothing may not be taxed) and I’ve heard that some jurisdictions exempt out-of-state residents from any sales taxes. My state doesn’t want me to be able to do that, and neither do the in-state stores who are obligated to collect the tax and mainly employ state residents. At the moment, there are some number of people who don’t do this because it’s not worth the risk- eliminate the risk and more will do it. I have to say, though, a certain amount of what sort of taxes you think are reasonable has to do with what you are used to. Income tax, real property tax and sales and use tax all seem reasonable to me but the idea of personal property taxes makes my head spin. ---
**Author:** ![whatami](https://avatars.discourse-cdn.com/v4/letter/w/85f322/32.png) [@whatami](https://boards.straightdope.com/u/whatami)\ **Post date:** [July 20, 2010, 6:06am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/83 "2010-07-20T06:06:24Z")
> [@TimeWinder](#): > > Relatively small population needing services, a very high business personal property tax in many counties, a midrange personal income tax, and relatively high property taxes. Plus, many services get bumped to counties, which have their own revenue generation capabilities. Compare and contrast with Washington state, which is the opposite: high sales tax, no personal income tax, and very tight state control. > > But mostly it’s that Oregon’s legislative system makes it very, very hard to create or raise taxes – you basically need the population to agree to tax themselves more on the ballot. It’s unfortunate, really, since the population of the state increases by a third or so in the summer due to tourists – a sales tax would allow said tourists to pay the residents taxes for them. Oregon has been running at a level of services many other states would find inadequate for years (and ranks very low on state tax burden). However, I’ve never heard as much whining about taxes as I did when I lived there – there’s sort of a cultural level of resistance to taxation there that I’ve never seen elsewhere. Yeah. When I lived there, I really thought the taxes sucked. Then in January, I moved to Seattle and am learning what taxes are all about. ---
**Author:** ![Shot\_From\_Guns](https://avatars.discourse-cdn.com/v4/letter/s/ccd318/32.png) [@Shot\_From\_Guns](https://boards.straightdope.com/u/Shot_From_Guns)\ **Post date:** [July 20, 2010, 7:23pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/84 "2010-07-20T19:23:53Z")
> [@magellan01](#): > > Does anyone know anything about this. Another person chiming in, as I’m sure you’ve already been told this repeatedly, to say you’re a fucking 'tard. AFAIK most or all states work this way; they just count on you to self-report. Seriously, my mom taught me this the first time I bought something out of a catalog like twenty years ago. ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [July 20, 2010, 7:53pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/85 "2010-07-20T19:53:02Z")
> [@magellan01](#): > > It’s from the State Board of Equalization, P.O. Box 942879 ([boe.ca.gov](http://boe.ca.gov)). Yup…I got one for my business…asking me to create a new “Use Tax Account”. My wife has been making some online office supply purchases that didn’t add sales tax. It’s gonna be fun digging those receipts up…maybe about 10 purchases per year and about $1000 total of purchases…about $100 per year in payments. ---
**Author:** ![Glory](https://avatars.discourse-cdn.com/v4/letter/g/7cd45c/32.png) [@Glory](https://boards.straightdope.com/u/Glory)\ **Post date:** [July 20, 2010, 7:59pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/86 "2010-07-20T19:59:06Z")
> [@whatami](#): > > Yeah. When I lived there, I really thought the taxes sucked. Then in January, I moved to Seattle and am learning what taxes are all about. Ha, I moved from Seattle to San Diego in 2008 - hello, CA state income tax! I am making about the same salary, with less take home pay AND last year, I owed the state when I did my taxes. Zoinks! ---
**Author:** ![Starving\_Artist](https://avatars.discourse-cdn.com/v4/letter/s/aeb1de/32.png) [@Starving\_Artist](https://boards.straightdope.com/u/Starving_Artist)\ **Post date:** [July 20, 2010, 8:05pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/87 "2010-07-20T20:05:03Z")
> [@Shot\_From\_Guns](#): > > Another person chiming in, as I’m sure you’ve already been told this repeatedly, to say you’re a fucking 'tard. Yeah, but you’re just as big (and eager) an asshole as **mhendo**. So you can fucko off too. ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [July 20, 2010, 8:47pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/88 "2010-07-20T20:47:14Z")
> [@Glory](#): > > Ha, I moved from Seattle to San Diego in 2008 - hello, CA state income tax! I am making about the same salary, with less take home pay AND last year, I owed the state when I did my taxes. Zoinks! The price you pay for the amazing schools and efficient government. ---
**Author:** ![magellan01](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@magellan01](https://boards.straightdope.com/u/magellan01)\ **Post date:** [July 21, 2010, 1:17am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/89 "2010-07-21T01:17:25Z")
> [@Shot\_From\_Guns](#): > > Another person chiming in, as I’m sure you’ve already been told this repeatedly, to say you’re a fucking 'tard. AFAIK most or all states work this way; they just count on you to self-report. > > Seriously, my mom taught me this the first time I bought something out of a catalog like twenty years ago. Well, it’s your mom’s fault then, as she never taught me that. She did teach me how much a woman could love slobbering over cock and slapping her face with it and teabagging, but she never said a single thing having to do with online purchases. Honest. Just ask her. ---
**Author:** ![Manduck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/manduck/32/256_2.png) [@Manduck](https://boards.straightdope.com/u/Manduck)\ **Post date:** [July 21, 2010, 6:51am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/90 "2010-07-21T06:51:22Z")
This thread has become more entertaining than it has any right to be. ---
**Author:** ![CanvasShoes](https://avatars.discourse-cdn.com/v4/letter/c/74df32/32.png) [@CanvasShoes](https://boards.straightdope.com/u/CanvasShoes)\ **Post date:** [July 21, 2010, 9:30am UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/91 "2010-07-21T09:30:47Z")
> [@Rumor\_Watkins](#): > > Let’s do! > > Alaska = oil royalties galore plus being the 3rd highest state for federal funds received per dollar of federal tax paid (1.84 received per 1.00 submitted to federal coffers) We do have sales tax (though I don’t have a clue what part of that, if any, goes to roads). There just isn’t one in Anchorage, though most of our other major towns do have sales tax. I don’t have a clue if we have a use tax for online purchases though. I would guess probably not since we don’t have any suppliers instate for a ton of things (if I understood correctly, that was one of the things that allowed states to tax online purchases?). Did you mean federal funds for roads, or overall? Though I’m not surprised, any work up here costs far more to actually do, thanks to our shipping costs among other things. ---
**Author:** ![Shot\_From\_Guns](https://avatars.discourse-cdn.com/v4/letter/s/ccd318/32.png) [@Shot\_From\_Guns](https://boards.straightdope.com/u/Shot_From_Guns)\ **Post date:** [July 21, 2010, 3:43pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/92 "2010-07-21T15:43:01Z")
> [@Starving\_Artist](#): > > Yeah, but you’re just as big (and eager) an asshole as **mhendo**. So you can fucko off too. Coming from you, **Starvey** , that’s a glowing endorsement. > [@magellan01](#): > > Well, it’s your mom’s fault then, as she never taught me that. She did teach me how much a woman could love slobbering over cock and slapping her face with it and teabagging, but she never said a single thing having to do with online purchases. Honest. Just ask her. You didn’t pay for those lessons, that’s why. It was \*right there \*in the course catalog. But it’s all part of the confidentiality clause: just like she wasn’t going to ask why you \*wanted \*to know what to do when another man dips his balls in your mouth, she also wasn’t going to ask why you \*didn’t \*care to find out about how to deal with sales tax on purchases from catalogs and online stores. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [July 21, 2010, 3:52pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/93 "2010-07-21T15:52:58Z")
> [@CanvasShoes](#): > > I would guess probably not since we don’t have any suppliers instate for a ton of things (if I understood correctly, that was one of the things that allowed states to tax online purchases?). The states can enforce a use tax whether or not you have local suppliers. They just usually _don’t_ if there isn’t a local supplier. ---
**Author:** ![magellan01](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@magellan01](https://boards.straightdope.com/u/magellan01)\ **Post date:** [July 21, 2010, 4:51pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/94 "2010-07-21T16:51:24Z")
> [@Shot\_From\_Guns](#): > > You didn’t pay for those lessons, that’s why. Well, all I had was a dollar, and she didn’t have any change. So yes, I still owe her that quarter. And the lessons were for internet use tax, like you she said she taught you.Now, if she _also_ taught you how to slobber over cock and whack it across your face, I misunderstood your earlier post. My apologies if I did. ---
**Author:** ![Shot\_From\_Guns](https://avatars.discourse-cdn.com/v4/letter/s/ccd318/32.png) [@Shot\_From\_Guns](https://boards.straightdope.com/u/Shot_From_Guns)\ **Post date:** [July 21, 2010, 6:23pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/95 "2010-07-21T18:23:19Z")
Apparently you’re a retard, so let me spell the insult out: You paid my mother to teach you how to gobble cock and suck on balls. You failed to hire her to \*also \*teach you the basics of how to deal with sales tax on purchases from out-of-state vendors. ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [July 21, 2010, 8:45pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/96 "2010-07-21T20:45:06Z")
I just wanna know one thing… Was the saliva produced during cockgobbling and ballsucking subject to use tax or was the tax already included if she was a local supplier? 😉 ---
**Author:** ![NAF1138](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/naf1138/32/3245_2.png) [@NAF1138](https://boards.straightdope.com/u/NAF1138)\ **Post date:** [July 21, 2010, 8:50pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/97 "2010-07-21T20:50:33Z")
> [@Yeticus\_Rex](#): > > I just wanna know one thing… > > Was the saliva produced during cockgobbling and ballsucking subject to use tax or was the tax already included if she was a local supplier? 😉 You know you have worked in accounting for too long when you come up with a really really funny joke response to this question and then realize that no one who doesn’t work in accounting would get it. ☹ ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [July 21, 2010, 9:23pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/98 "2010-07-21T21:23:03Z")
> [@BrotherCadfael](#): > > This is fairly standard for any state which imposes a sales tax. You are responsible for reporting and submitting any Cali taxes due on out of state purchases. Nobody actually does it, mind you, but that is pretty much the law in any sales-taxing state. Ohhhh yes they do. If, for example, you cross state lines to buy something that is not taxed in that state but is in yours…do not stop at the first store you come across but head further in. It is not uncommon for your state to get sales records from that store (near the state lines) then come after you for not paying sales tax. {Aunt was hit up this way a couple years ago for a clothes shopping trip} ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [July 21, 2010, 9:29pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/99 "2010-07-21T21:29:31Z")
Awww…come on…someone here will probably get it. ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [July 21, 2010, 9:34pm UTC](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063/100 "2010-07-21T21:34:42Z")
The State of Massachusetts [sued a tire retailer](http://www.boston.com/news/local/massachusetts/articles/2009/02/03/state_chases_sales_taxes_in_nh/) that had stores in NH and MA to collect MA sales tax on MA residents who crossed the border to buy tires in NH. [They lost.](http://www.boston.com/business/articles/2009/08/26/state_cant_collect_tax_on_sales_in_nh/) [Previous page](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063.md?page=4) [Next page](https://boards.straightdope.com/t/i-owe-a-california-use-tax-wtf/547063.md?page=6)