. . . and
Quill v North Dakota (SCOTUS 1991?) is why you're not paying
sales tax on interstate purchases!
On Mon, 5 Feb 2007, David Griffith
wrote:
Do you have an URL on this? There's an awful lot
of talk about California
among others wanting sales tax paid on interstate purchases.
No URL handy, but Google should work.
In 1953?, The Baldwin case (SCOTUS) decided that sales tax should not be
imposed on interstate commerce. Sales tax could be imposed iff the seller
had a "nexus" (presence) in the destination state.
Over time, some states got "creative", declaring that "well,
things are DIFFERENT now", and defining presence in terms of any
storage, advertising within the state, etc.
The customer service rep of North Dakota was very helpful but honest. He
told me, "we define it somewhat aggressively. We feel that there is a
presence if there are at least three phone calls made into the state.
Oh, and by the way, this counts as the first one."
Quill (mail-order office supplies) didn't agree. It went to the Supreme
Court (SCOTUS). SCOTUS sided with Quill, that a "nexus" had to be a
physical presence.
Quill deserves our support!
Periodically, the "oh, well, things are DIFFERENT now" states will resume
their contempt of SCOTUS.
and, of course the fact that it is called "Sales and USE tax" gives the
states the opprotunity to say that anything that you buy is subject to USE
tax, regardless of where you got it. California once tried to apply that
to a database of customs declarations!
When sales tax IS applicable, it is theoretically at the rate of the
destination location. But, the Bd'o= doesn't care if businesses charge
the rate of the source location, since it is more often higher. Thereby
eliminationg the market for the XenoSoft Sales tax Genie.
--
Grumpy Ol' Fred cisin at
xenosoft.com