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  1. Join Date
    Jun 2006
    Posts
    1,047
    #11
    in response to sales taxes, here is the basic rule of thumb:
    *if the out of state vendor has no nexus (legal connection) to your home state, then YOU don't have to pay sales tax (the out of state vendor is not obligated to collect sales tax on your home state's behalf). however, when you file your state income tax return, you will be required to report your out of state purchases, which your home state will use to compute the USE TAX you owe. from my experience, not many people are willing to pay more tax voluntarily...if you get my drift.
    ----MOST OUT OF STATE ONLINE RETAILERS THAT HAVE NO BRICK AND MORTAR SHOPS (not enough nexus) IN YOUR HOME STATE ARE NOT REQUIRED TO COLLECT SALES TAXES.
    software that was purchased online, downloaded online (you did not received a CD copy of it) is exempt from use tax in most states. i think, if i remember correctly, only PA & IL are the two states that do not exempt digitally downloaded software from use tax.
    Last edited by n2knee; October 31st, 2009 at 06:26 AM.

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