[Politech] Who owes taxes, in purchase involving California, North Carolina, Washington state? [econ]

From: Declan McCullagh (declan@private)
Date: Thu Apr 13 2006 - 19:04:49 PDT


Because state taxocrats will always find a taxable event somewhere if 
possible, someone is required to pay the tax on Nathan's suggested 
transaction, and it's probably him. Anyone have any definitive thoughts? 
As for question #2, it's answered in today's story here:
http://www.politechbot.com/2006/04/13/a-new-tax/

-Declan

-------- Original Message --------
Subject: Re: [Politech] At tax time, state governments push to tax 
Internet sales [econ]
Date: Wed, 12 Apr 2006 15:26:25 -0400
From: Nathan L. Walls <nwalls@private>
To: Declan McCullagh <declan@private>
References: <443D4F2E.7010605@private>

Declan;

Two immediate questions I have from the article I'd love to have
answers and opinion (from state officials and qualified tax
preparers) on...

1) My online purchases for physical items are shipped to third
parties as gifts. I'm purchasing an item in North Carolina from a
vendor in Washington for friends in California. Who's responsible for
what? It was a gift to my friends in California, so I'm pretty sure
no tax is due there. I don't have the item in North Carolina, so no
'use' tax would be due here, I'm not using it in NC. However, if I
had the same scenario in NY, this could cause me problems.

2) Items that I purchase for myself online, songs and video through
iTunes, don't have a physical representation. Are use taxes due on
those?

Thanks for coverage of the issue.

Nathan Walls

On Apr 12, 2006, at 3:04 PM, Declan McCullagh wrote:

>
> http://news.com.com/States+push+to+tax+Net+shopping/ 
> 2100-1028_3-6060450.html
>
> States push to tax Net shopping
> April 12, 2006, 11:27 AM PDT
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