Author Topic: Certain States: Retailers Now Required to Report Out-of-State Purchases Re. Tax  (Read 278 times)

Offline Something Fishy

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According to a bunch of state laws now going into effect, out of state retailers will now need to report sales to state governments. This is already in effect in Colorado, Vermont, Washington, and Rhode Island. Puerto Rico, Louisiana, and a few others are coming aboard soon too.

In the past, if you bought something at B&H for instance and shipped it to Colorado, they didn't collect any sales tax. But now B&H is required to share that purchase with the Colorado tax authorities, who can come after you and make you pay the tax.

Some examples and more details:

https://www.colorado.gov/pacific/tax/use-tax-information-non-collecting-retailers
http://tax.vermont.gov/business-and-corp/sales-and-use-tax/noncollecting-vendors
https://blog.taxjar.com/use-tax-notification-law/

Yet another nail in the coffin for online "tax free" shopping...
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It was just a matter of time and it's still just a matter of time until all states follow.
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Offline Something Fishy

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It was just a matter of time and it's still just a matter of time until all states follow.

Absolutely.
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Offline 12HRS

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But now B&H is required to share that purchase with the Colorado tax authorities, who can come after you and make you pay the tax.

So to clarify, B&H does not have to collect the tax just report the sale? how do the states plan on enforcing reporting?

Offline Something Fishy

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So to clarify, B&H does not have to collect the tax just report the sale? how do the states plan on enforcing reporting?

Correct.

I'm not sure how they plan on enforcing at this time.
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Offline avromie7

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Correct.

I'm not sure how they plan on enforcing at this time.
Probably just a step in that direction.
I wonder what people who type "u" instead of "you" do with all their free time.