California Sales Tax Charged to Other States

[marlopez]

I was told by my CA Rolex AD that a law passed where they must charge sales tax to particular states for out of state of purchases. Does anyone know the list of states?
I was told that Arizona and Hawaii are affected, but Texas is not.

I did some research and read about a case, South Dakota vs. Wayfair which set the precedent. But I couldn’t find the list of states that are affected., but Texas is not.


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[Knappo 1307]

https://taxfoundation.org/2020-sales-taxes/

[marlopez]

Originally Posted by Knappo 1307

https://taxfoundation.org/2020-sales-taxes/

Did I miss the list?


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[vh2k]

Is it a chain or independent dealer? Larger companies have stricter policies on this issue.

If the dealer has an established nexus in the recipient’s state, they are responsible.

https://www.salestaxinstitute.com/re...er-nexus-chart

[Tools]

Originally Posted by marlopez

. . .

I did some research and read about a case, South Dakota vs. Wayfair which set the precedent. But I couldn’t find the list of states that are affected., but Texas is not.

If your AD does not have an active presence/business tie (nexus) in a state above a certain threshold, they are not obligated to collect that states sales tax. You are expected to report and pay those taxes yourself.

Texas is not exempt, so it is likely that the AD was only speaking for themselves as a business.

[marlopez]

Originally Posted by Tools

If your AD does not have an active presence/business tie (nexus) in a state above a certain threshold, they are not obligated to collect that states sales tax. You are expected to report and pay those taxes yourself.

Texas is not exempt, so it is likely that the AD was only speaking for themselves as a business.

Got it. Thank you


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[MILGAUSS88]

The "nexus" was legally determined to be a sales threshold, not necessarily a brick and mortar location.
So each state can set a different standard for how much sales to their state would require the collection of sales tax.

[Burlington]

Sounds like a tax shakedown to me

[Tools]

Originally Posted by Burlington

Sounds like a tax shakedown to me

Those who are now paying think so.

My state has a sales tax on autos, the state next door didn't charge sales tax on cars that were leaving the state.

Folks would drive to the next state to buy their cars tax-free. The laws were changed so that proof of tax was needed for new registrations in my state. Now you can buy your shiny new car anywhere, but you can't avoid the tax when you register.

Like most things, people abuse a system until it begins to snowball. It's massive non-taxed Internet sales that have resulted in the Wayfair decision.