Comment by sowbug
2 days ago
Or maybe this is used to justify a new emergency federal law that all purchases must be reported on your tax return, just in case the government ever needs to refund any illegally collected import taxes.
I think I'm kidding, but I'm not really sure anymore.
Indiana has sometimes required that for decades, though I think they finally adjusted the law a little after online purchases became popular.
Indiana charges sales tax like a lot of states, but only on things sold in the state or from a company located in the state. If you ordered something from California or overseas, no sales tax was charged. The law required you to track these purchases and report it on your tax return so you can pay the required sales tax.
That said, enforcement wasn't good and I don't know a single person that actually did so. A common tax fraud for the average person, I guess.
And honestly, I think any emergency federal law would be similar: It wouldn't be for refunds for the masses, but for surveillance and extortion.
Yeah, most states that have sales taxes have "use taxes" to cover this case and the case of a wholesale item (no tax) being used in house. It gets enforced primarily in retrospect and on big ticket items that the state does see, like a vehicle purchase.
Heh. Indiana charged sales tax at when you registered the vehicle the first time unless you had paperwork proving otherwise.
Very common for a private sale to put the price cheap, but not free - $200 charged sales tax on $200 and a free car was charged on the estimated value.
A federal law has to be approved by Congress, that isn’t happening. An executive order maybe?
That would be no more legal than what the Supreme Court just struck down.