[nylug-talk] new jersey to tax

[Ron Guerin]

Peter C. Norton wrote:
> On Fri, Sep 29, 2006 at 07:42:29AM -0400, Dan Crosta wrote:
>> On Sep 29, 2006, at 6:14 AM, mylar wrote:
>>> Don't some states already impose taxes on Internet related purchases ?
>>>
>>> mylar
>> Well we all know that physical purchases made over the internet are  
>> taxed at your state's sales tax rate if the company has any physical  
>> presence in the state -- a warehouse, an office, etc.  I'm not sure  
>> this is true for electronics-only purchases, or content purchases,  
>> though I imagine it is the case as well.
> 
> My understanding is that it's only companies that have offices in a
> state that are required to charge the tax. In fact in theory you are
> responsible for paying sales tax on the honor system for anything you
> purchase out of state. Which is bullshit, but apparently for some
> companies I've heard that some states AGs are trying to get records of
> items shipped to their states to try to collect taxes.

IANAL.  IAONU.  (I Am Obviously Not Unbiased)

It's called the "Use Tax", which is joined at the hip with the sales tax
(as in "Sales & Use Tax").  It's not dissimilar in theory to buying
protection from the mob.  If you want to use that item, without harm
coming to you (jail), you can pay a fee, and be safe in your home.  The
nice theory put forward is always that children will go unfed and
civilization will break down if they don't get this money, but the money
is supposed to be paying for things minimized by Internet purchases like
wear and tear on the roads, and if anyone's paying attention to what the
roads look like, it's pretty obvious the money is being spent on other
things.  The purpose of trying to collect this Use Tax is to avoid
having to go to legislatures, which aren't generally looking to stick
their necks out.  It would require asking for the money under false
pretenses that voters might swallow, and it's just a lot easier for them
to try and exploit what's already on the books.

If you look closely at your phone bill, you should see an Excise Tax.
Apparently phones are bad for you and for society, because that's what
excise taxes are for.  To encourage you to give up the excise-taxed
item.  Do you think they really want you to give up your phone?  Of
course not.  They just needed another excuse to pick your pocket.

- Ron