[quote=mlin][quote=laffingbilly]...and as you so clearlyl wrote, the liability is on the business not the consumer. if the business fails to collect the tax on the consumer good, then the business is liable to still pay the tax, NOT the consumer. ..../QUOTE]
Originally Posted by laffingbilly
...Case in point, several companies have promotions that you don't pay tax...well, the company is still liable to pay tax on that product it sold you...../QUOTE]
Busniess withholds taxes from you does not mean its laible for taxes. YOU ARE. If business fails to withold taxes from consumer, consumer require to pay not business. Just look at your state income tax return.
People always confuse about withholding taxes. When someone withhold taxes from you, that means you are liable and whoever submit taxes is only an agent to government not becuase the tax is on them.
When companies have promotions that you do not pay taxes ---
I assume they are talking about advantage of dot com companies that THEY DO NOT HAVE PHYSICAL LOCATION IN THE STATE YOU LIVE AND THERE WAS NO OTHER SITUATION CONSTITUTE "NEXUS" WITH YOUR HOME STATE TO MAKE THEM WHITHHOLD YOUR SALES TAXES. And those companies will not pay a dime to your home state for your purchase.
simply not true...income tax is also different than sales tax. the govt doesn't go after the consumer to collect the sales tax on a good he purchased, he goes after the company who sold the item. The company who sold the item has to pay the tax. if it does not charge the tax, then it still has to pay the tax to the state.
when i said companies have promotions for no taxes, those are normally local businesses that i have seen, not internet or mail sales. the bottom line is, the govt does NOT go after the consumer for not paying the sales tax. the company as the agent is responsible, thus liable, for collecting the tax on the goods and services it sells. if it does not, the govt does not collect from the consumer, it collects from the business. if the business fails to collect the tax from the consumer or decides not to collect the tax from the consumer, the consumer isn't liable for the tax.
just one simple case in point since i'm in texas from the texas comptroller: "6. If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying sales tax to the Comptroller's office? As a seller, you are responsible for collecting and remitting the correct amount to the Comptroller's office. If you do not collect and remit the correct amount, you can owe any additional tax plus you may be assessed penalties and interest."
or massachusettes from its tax office: "...in addition to liability for sales tax collected from customers on retail sales, a corporation or partnership is liable for sales tax due on retail sales even though the business failed to collect the sales tax from its customers"
and i could go on and on.
now income tax is different, as is use tax, ad valorum, etc. etc.
i think the confusion is in the difference between sales tax and use tax. use tax is when the consumer is responsible for paying taxes directly to the state. the difference between sales and use tax is the person who pays the tax. sales tax, the company pays the govt, whereas, use tax, the consumer pays to the govt. Thus, the liability of paying the tax is different: in the former, the liability falls on the company (if it fails to pay the state the full amount, it is liable for interest, the tax or difference, plus fines); the latter, liability falls on the consumer.
again, if a company fails to charge the correct sales tax to the consumer, it still must pay the tax to the govt. so in some promotions of local companies saying no tax, the company is essentially having a sale on the item and figuring whatever discount to include what they will inevitably have to pay to the state. it doesn't mean the company still doesn't have to pay the tax, it just a marketing gimic.
bottom line is that you do not pay sales tax on a dell if dell does not have a retail store or business operation in that state.