Dumb Elux tax question

[Couturegrl]

OK I understand that ELux does not charge tax to most states, including AZ where I live. However, I have read people saying on TPF that "you are responsible for complying with your state's taxes". What exactly does that mean?

Thanks for clearing up the confusion!

 

[elongreach]

Whenever you aren't charged tax, you are technically supposed to claim it on your taxes to pay it then. But not many listen to that.

 

[angelica]

Interesting. I never noticed that "clause". I didn't pay taxes when my damier speedy was shipped to me. I hope I don't have to. Guess I need to check AZ tax code?

 

[angelica]

Whenever you aren't charged tax, you are technically supposed to claim it on your taxes to pay it then. But not many listen to that.

That sucks. Probably because there's a LV boutique in AZ. Ugh.

 

[Couturegrl]

LOL ladies thankyou for the info

 

[angelica]

Yep as long as elux doesn't turn me into the feds I'll be alright lol

 

[Jadore]

Wait!,so if I were to order a bag on Eluxury,will I have to pay NYC tax on it?

 

[elongreach]

No you don't. It's no tax. However you should be putting the fact that you bought it on your taxes. You dont have to, but technically that's what you should be doing.

 

[angelica]

I guess so. Boo!

 

[jane]

It probably only applies over certain amounts. IE, the luxury tax.

 

[elongreach]

In gambling, you are required to fill out a Tax form for anything over 5000 dollars that you win. I'm not sure about purses, but Chigirl is a lawyer and knows a lot about this matter. I'm going to PM her and ask her to respond to this.

 

[chigirl]

I just got home (and have family in town) but I will explain it all to you in a bit. I am a state tax attorney but the quick answer is that if a vendor does not charge sales tax, you are required to self-assess use tax. The use tax is the counterpart to the sales tax so the rate is the same for both. That is, you would have to pay use tax based on your local tax rate (as if you bought it in the store). You are basically paying a tax for using the item in your state. This tax applies to all tangible personal property -- it is not just luxury items. I will explain more if you all are interested.