USMilitarySurplus said:
we are required by law to charge our customers sales tax. .
Now this LAW is every State law? Certainly is not a fed Law for State sales...
I just like to understand how it works, not looking to stir anything here........
I have a business and pay all my taxes in my State, my sales are 99% Internet sales and if I sell anything out of my State no one told me that I am "required" to charge tax for sales done out of State....checked once with my Accountant and twice with the State, UNLESS if my business is also a registered business in other State.
Now, is my understand and please correct me if I am wrong, GL is a business in AZ.......... now, to collect auto sales tax in other States is ONLY possible IF GL have a registered business as an auto dealership in each of those States, one can purchase and sell a limited number of vehicles per year (limit vary with each State, usually 5) without a valid auto sales business.
I cannot see any way to turn the collected funds to every State without being a legit business in that particular State
The auto sales tax is paid at the time of the sale and registration (in the State), now those trucks have no title or registration when sold and the origin State should not get any tax but the home State where the vehicle will be registered.
Example, in 1986 I purchased a brand new Corvette in NH (no tax in NH)...but I was living in MA so I paid the MA tax when registered it there...later, I move to VT....had to pay VT tax again to have it registered in VT.
Now, not to make confusion with tax we pay to pave the streets etc....that is what we pay every year in order to get a new decal for the tag...maybe some States use a portion of the sales tax for this matter...I don't know.
Going further, even the "vehicles" sold and used to be scrap should have a title and registration prior going to scrap....that's the only control the State have in order to collect tax on that sales.....so, for those thinking that scrap will be the way to go, think twice because you will need wait for the SF-97 too. ((Unless vehicle is sold not as a vehicle but a total pile of scrap metal...))