Good question. I know the state of Oregon has no sales tax. I've never bought anything there personally, but I guess it used to be that nothing a Washington resident bought there was subject to our sales tax. Then more recently I guess the state decided to start collecting on what they could and went after things that had to be registered, like cars. But I don't know about a situation where both states have sales tax. Maybe the issues with this are part of the reason taxes specifically on downloaded purchases haven't been done by other states already...Mooseman;279902 said:Here's a question about this, "a 5% sales tax on all digital content purchased in Wisconsin", what if the selling company is in Ohio? Which state collects the sales tax? Do both? Seller state or buyer state? What if it's overseas? What if I sell my magic cards on ebay to someone in Wisconsin? I can see lots of problems with this type of taxation.
I doubt that, those people just have to pay the tax.... I live in PA and there are some sites that charge sales tax on purchases in PA.....Oversoul;279956 said:And what if the major sellers of this content start refusing to sell to Wisconsin residents?
The sites charge a tax?Mooseman;279960 said:I live in PA and there are some sites that charge sales tax on purchases in PA.....
Maybe, but Oregonians seem to really like not having any sales tax, so I don't know if that'll change any time soon...So if I sell something on E$bay to someone in Oregon, who collects the sales tax? PA, OR or both. I bet it gonna be both at some point......
That seems strange. I would think that even though a state where you work collects tax, the state where you live (and file) has some way of offsetting/reclaiming it. I haven't been in that situation, but I use TaxCut and just recently prepared my taxes and with Maryland, I always get the question of "Have I had taxes withdrawn from my paycheck in another state" or "Have I worked in another state", something to that effect. I would think the same type of thing would be similiar to all states.I don't know if it is specifically some sort of agreement between the two states or if there are federal laws that require this sort of taxation.
Isn't it free to do your taxes online via the IRS? I know you can do PA taxes online for free.Mooseman;280041 said:I hate turbo tax. I can't stand having to follow their questions and not being able to just edit the form myself..... Is Taxcut better? Is it free?
Send links, send links..... ha ha ha..... no really....rokapoke;280045 said:Isn't it free to do your taxes online via the IRS? I know you can do PA taxes online for free.
Yeah, same here.EricBess;279979 said:A lot of the laws involving sales tax have to do with where businesses have a physical presence. I'm not sure exactly how those laws work or how they would apply to virtual goods.
Yeah. Vancouver is weird.The Washington/Oregon thing is pretty interesting. Technically, stores in Oregon are supposed to charge sales tax to people who live in Washington, but unless the product needs to be delivered or registered, nobody bothers and it isn't worth cracking down on. I spent 5 years in Vancouver, just north of Portland and there literally are no electronics stores in Vancouver because they wouldn't be able to compete.
On the flip side, stores in Washington still need to charge sales tax, regardless of where you live. Many stores in Vancouver have a policy that if you show an Oregon ID, they will pay the sales tax for you.
I think it's just Oregon state law still being applicable to income generated in-state, but yeah, maybe there's a federal law on the books regarding this. I don't know...Income tax is similar. Washington has no state income tax. If you live in Washington and work in Oregon, however, you are required to pay Oregon state income tax. Likewise, if you live in Oregon and work in Washington, you still must pay Oregon income tax. Personally, something seems wrong with all of that to me, but it's the way they do things. I don't know if it is specifically some sort of agreement between the two states or if there are federal laws that require this sort of taxation.