Question about online sites and sales tax

Is there any particular reason why some sites (Last Bottle, First Bottle) charge me sales tax when i order and ship to Massachusetts but some (WTSO, DN) don’t? Just curious.

ineptitude combined with a lack of enforcement.

i’ve even seen individual stores go back and forth.

This

If you think this is annoying with Sales tax, imagine living in PA where just getting things shipped is roulette.

If people name specific stores/state combinations, that is a good way to get either shipping halted, or sales tax imposed. I suggest commenters redact certain names upthread.

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Amazon got in trouble this a few years ago.

I remember doing these individual state tax problems in my intermediate accounting courses. It’s just one of those things you should report, but no one does.

There is an tax joke “There is income… and then there is cash”.

Some out of state retailers have an obligation to pay sales tax on MA internet sales and others don’t. So it could be that the retailers are subject to different rules. It could also be that some retailers don’t pay very close attention to the rules. At the end of the day, it doesn’t change your obligation to pay MA tax on purchases that you make out of state (although I understand that compliance with the rule might be somewhat lower when you are charged at the time of purchase).

There is nothing untoward or illegal implied by certain retailers charging sales tax while others don’t, at least in this instance. It is to be expected.

There is some wine I want in California but the retailer’s site automatically adds sales tax to Oregon deliveries, so I haven’t made the purchase. I buy lots of wine from other retailers in California and have never been charged sales tax, as we have none here in Oregon.

My life observation is that when very attractive deals get heavy publicity, they end up getting shut down.

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One of the camera stores in NYC wasn’t charging sales tax online then it caught on. They now have a credit card that’s advertised as like “no tax” card since the rewards negate it.

If you paid another state’s taxes, you generally don’t owe in your home state, though, do you? I guess that could depend on the home state’s law.

A WBer in a Sunbelt state reported several years ago that his state tax authorities came knocking at his door demanding a large sum in taxes for out-of-state wine purchases over an extended period. As I recall, they’d obtained records from UPS or FedEx, or someone, that allowed them to target our friend.

For many years, I have paid California use tax on out of state purchases where sales tax was not collected. In my case, it hasn’t been that much money (and I legally owe the money). I believe I’m in a minority, but I know others who also pay (it’s explicitly listed on the CA State Income Tax return).

-Al

I do the same in New York. Although so many places have a nexus to New York at this point that almost everything I buy ends up getting dinged for NY sales tax anyway.

Yes, the fraction of retailers with a nexus in California is also quite high. Amazon used to not collect (on their direct sales) but they decided it made more sense to collect the sales tax and be able to have warehouses in CA. California also passed a law to require a license to ship alcohol into the state and made collection of the sales tax a requirement. I used to buy from a small wine shop that was apparently unaware of the law, but not in the last few years. So, as in your case, the amount of use tax I have to pay has dropped quite a bit over the years.

-Al

Also after SD vs Wayfair, tax collection is no longer a choice for a firm like Amazon

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Amazon had started collecting sales tax on their sales to California long before SD vs Wayfair, I think they started in 2012. As mentioned, they decided they wanted the warehouses and fulfillment centers in CA, also now have delivery services, and have more than 150,000 employees in California (and growing). The fight now is between various cities over how sales tax is shared.

-Al

There are some unusual cases where CT / NY ‘residents’ are getting tagged with dual primary residency for capital gains taxes, with no offset. I can’t remember the exact reason why it was happening, but it was kind of an edge case.

As a CA resident, there are almost no retailers left that do not impose my local taxes on my purchases. I only buy from one out of state firm nowadays, since I’m always scared of shipping rules changes.

Yes they started paying long before as nexus was established through traditional means.

Massachusetts doesn’t charge sales tax on wine.