Sales tax on purchases internet verses shop
Hi Being a European we are not used to having the tax added at the end and not on the as seen price of an article. Coming to the states this year to buy an RV and looking at all the extras we will ne...
Forum Discussion
Bumpyroad wrote:
I think your VAT is much more than our sales taxes which run about 6-8%??? On a RV, we don't pay a standard sales tax, it is a fee added to register/license/title it and varies with the state you title/license it.
bumpy
Sales tax is usually added to the purchase of "things".
There are 5 states with *no* sales tax.
Alaska, Hew Hampshire, Montana, Delaware, Oregon.
In states *with* a sales tax, most want their revenue and will try to get it - including sales tax on Internet (mail order) purchases.
A 'standard' question now by income tax preparers in some states where sales tax is due, is:
Have you purchased mail order items without paying sales tax?
You're supposed to tell them how much you spent, and sales tax is then due with your tax return.
Bumpy may be correct for his state, but others DO collect *sales tax* on vehicles and RVs, and yes - they usually call it sales tax, but sometimes 'sales tax' by a different name, LOL!
Ex: CA = sales tax (about 9%) on price of new or used vehicles and RVs.
In SD it's called excise tax (about 3%) on vehicles and RVs.
Both added when you register the vehicle.
BTW - in CA you can (the "90 day rule") purchase an RV, take possession out of state, (it must be used out of state, and remain out of state for 1 year) - then register and title it and pay *no* sales tax.
(A savings of 9% sales tax. There's no change in registration/title fees)
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