Texas no out of state online sales tax?

[johngross]

Sorry for the couple of sales tax questions the last few days, but I may be making a large online purchase and 8% or so sales tax added to the sale would greatly affect the final price.

Based upon the information at the website of the Comptroller of Texas, if a Texas business makes an online sale to someone outside of the state of Texas, no sales tax is collected unless the seller has a business location in the buyer's state.

Pasted below is the relevant paragraph in reference to this from the Texas Comptroller's website. It seems very clear, but....it's a government entity.

If anyone can confirm or has conflicting information, I would appreciate it.

Thank you.


Online Orders – Texas Purchasers and Sellers


Sales to Customers Outside of Texas

Texas sellers do not need to collect Texas sales tax on items shipped and delivered to out-of-state locations. To document these sales, your records must include proof of delivery, such as a bill of lading, a shipping invoice or a postal receipt.

 

[yaktamer]

The quote you posted is incomplete, and doesn't say what you think it does. It says the seller doesn't have to collect TEXAS sales tax unless they have a presence in the receiving state. It than goes on to say that seller needs to contact the taxing auhority in the receiving state to see if they need to collect on that state's behalf. Unless, of course you are in a state that doesn't have a sales tax. There's also a link to South Dakota v. Wayfair, which changed the landscape in this area.

 

[s&wchad]

If you make ANY purchases where applicable sales/use tax isn't collected, you're required to report and pay the tax on your State income tax filing. This includes private parties and businesses.

Large businesses who handle internet payments (ebay, PayPal, Gunbroker, GolfNow, etc...) are now REQUIRED to collect and submit the sale tax to the various States. The internet companies who handle these transaction are also required to send a 1099K to you and the IRS if your total annual sales are over $600. If the seller can't document what they paid for an item they sold, the entire amount is treated as capital gains.

I don't like it either, but it is what it is...

 

[Tom S.]

I am assuming you live in a state other than Texas. Sellers in Texas may not be required by Texas to collect other states sales taxes but other states may make that requirement, or require you pay the tax. For instance, if you live in a state that has sales tax, they may have laws that either require out of state sellers submit the required taxes on sales for anyone from their state or they may require you pay sales tax (called use tax in Michigan) on out of state purchases.

So while a seller in Texas may not collect your state's sale tax, you may not be off the hook.

 

[Farmer17]

A few years ago there were many companies that didn't charge sales tax on the internet if it was an out of state purchase. Today there are VERY few that don't charge me here in Oklahoma. I did buy some guns and ammo quite recently from two online companies that had excellent prices and they didn't charge sales tax and that really surprised me! Sorry I won't release their names

 

[DWalt]

Up until relatively recently, there was no legal requirement for sellers to collect out of state sales tax on out of state sales. Something about Federal interstate commerce exemptions, I think. But the law changed nationwide several years ago, as most of the states clamored to collect all that sales tax revenue they were missing out on because they were unable to collect it.

 

[lawandorder]

Arkansas jumped on the online sales taxation. Now there so much money we are going to double the number of
Politicians because the current ones can not spend it fast enough and we have a surplus.