Question about online sites and sales tax

[Al_Osterheld]

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.

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).

Massachusetts doesn’t charge sales tax on wine.

That seem exceptionally civilized.

-Al

[Bdklein]

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.

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).

Massachusetts doesn’t charge sales tax on wine.

Sales tax isn’t charged, it is collected .

[Jay_Winton]

nice living in a state where there is no ST.

[Alex_N]

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.

Shipments to this region (OR) require an excise tax of $.77 per 1 gallon on offsite sales of wine greater than or equal to 14.001% alcohol due within 20 days after every month. Note: There is a tax exemption for the first 40,000 gallons of wine sold annually in Oregon by a Licensed United States Manufacturer producing less than 100,000 gallons annually.

Sparkling and cider:
Shipments to this region (OR) require an excise tax of $.67 per 1 gallon on offsite sales of wine less than or equal to 14% alcohol due within 20 days after every month. Note: There is a tax exemption for the first 40,000 gallons of wine sold annually in Oregon by a Licensed United States Manufacturer producing less than 100,000 gallons annually.


Product Type Sale Type Alcohol % Rate
Beer Offsite (any) $2.6000 per Barrel
Wine Offsite 0.0% - 14.0% $0.6700 per Gallon
Wine Offsite 0.0% - 8.5% $2.6000 per Barrel
Wine Offsite 14.0% or greater $0.7700 per Gallon
Beer Onsite (any) $2.6000 per Barrel
Wine Onsite 0.0% - 14.0% $0.6700 per Gallon
Wine Onsite 0.0% - 8.5% $2.6000 per Barrel
Wine Onsite 14.0% or greater $0.7700 per Gallon

[John_Glas]

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

Al run for congress. You will be a trusted politician.

[Victor_Hong]

Rudy never charged me for sales tax. Should I be grateful?

[John_Glas]

Rudy never charged me for sales tax. Should I be grateful?

Hell ya!

[Tom_G_l_a_s_g_o_w]

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

Amazon has warehouses everywhere, or so it seems. The physical presence typically triggers the collection of sales tax.
I think wine shops collecting the sales tax due locally has more to do with laying the risk of “illegal” shipments off on the buyer. I find this reasonable.

[Al_Osterheld]

Yes, they used to have warehouses in only a few states to avoid the nexus. Then they decided more local warehouses would help with rapid delivery and that compensate for any potential loss in demand from consumers when they were charged sales tax.

-Al