I don't get why some states impliment a use tax.

Discussion in 'Archived Threads 2001-2004' started by StephenA, Feb 13, 2003.

  1. StephenA

    StephenA Screenwriter

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    Why some states have a use tax where you're supposed to pay them a tax if you buy something out of state is beyond me. I've read a couple articles in a local paper about how Massachussetts is mad about Mass. residents going outta state(New Hampshire is one state they go to) to buy things due to Mass. having a sales tax, and then not reporting it on their taxes. What do they expect when it's cheaper to go to a neighboring state to shop?

    I know there's a few other states that have this tax too, but can't remember what states they are, besides Maine.
     
  2. Christopher P

    Christopher P Supporting Actor

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    We here in Washington State pay 8.8% sales tax, while our neighbors to the south (Oregon) pay no sales tax. Not too convenient for me (2 1/2 hour from the border) but pretty handy for people down in Vancouver and other cities near the state line. Of course we don't have an state income tax, so maybe it balances out.

    Chris
     
  3. Clinton McClure

    Clinton McClure Casual Enthusiast
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    I don't get why some states also have to pay personal property tax (ie: reoccurring taxes on a vehicle each year). Once you own something, you shouldn't have to keep paying the government for the rest or your life to keep it.
     
  4. Malcolm R

    Malcolm R Executive Producer

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  5. Michael Reuben

    Michael Reuben Studio Mogul

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  6. Patrick Larkin

    Patrick Larkin Screenwriter

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    I always wondered about this, actually. People from PA travel to Delaware to purchase items like TV's, computers, etc. Why don't people do this with cars? Is there too much of a paper trail for the state to find out?
     
  7. Jeff Kleist

    Jeff Kleist Executive Producer

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    They have a BIIIG shopping center about 100ft from the PA/DE border full of stores like Tweeter [​IMG]

    The PA Staties also have watchers down there to report people who buy booze or expensive electronics down there
     
  8. StephenA

    StephenA Screenwriter

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    I definitely think the use tax is useless, because who the hell is gonna report it? It'd be a pain in the ass for the state to track everyone down who didn't report it. But what do I know.
     
  9. Carl Johnson

    Carl Johnson Cinematographer
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    I've never tried it but I would assume your home state would charge you the tax when you go to register the vehicle. I bought a car off of Ebay a year ago and the Indiana BMV charged me sales tax based on the dollar amount for the sale recorded on the transferred title. Fortunately I didn't have to pay much because I officially paid $50 for that car [​IMG]
     
  10. Malcolm R

    Malcolm R Executive Producer

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  11. Mark Zimmer

    Mark Zimmer Producer

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    Actually, I work for the Wisconsin Dept. of Revenue and can say that a surprisingly large chunk of money comes from people voluntarily reporting use tax--it isn't a big percentage of the budget, but it's not chicken feed either. And that's not counting the use tax on cars, which is collected by the Division of Motor Vehicles when you go to register the car in Wisconsin. People may just be more honest than we give them credit for (or, since it's Wisconsin they may be too drunk to know the difference).

    Beyond the purely monetary aspects, it's not acceptable politically to tax the businesses in state and exempt the purchases out of state; that's like encouraging businesses to leave and take their jobs with them. So any state with a sales tax has a use tax, regardless of how much revenue it actually brings in.
     
  12. MarcVH

    MarcVH Second Unit

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    At least with respect to motor vehicles, you are generally allowed to own it without paying this tax. You only have to pay the tax if you want to exercise the privilege of operating it on public roads.

    It's unfortunate that so many states rely on sales tax for income, since (as this item raises) there are many loopholes for paying it and the income from it tends to be volitile. Property and income taxes are less troublesome in this way, though they can have issues as well.
     
  13. Yee-Ming

    Yee-Ming Producer

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  14. Tommy Ceez

    Tommy Ceez Second Unit

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    I have a solution

    NO MORE TAXES!!!
    Were overtaxed as it is (probably worse here in NY than elswhere) so I really cringe when people talk about new taxes or tighter enforcement on existing taxes. Lets just institute a 20% national consumption tax, eliminate the income tax and get it over with.
    And those of you who think a national sales tax is bad, consider this...a crack dealer currently pays no taxes but under a national consumption tax you and he would share a proportionate burden.
     
  15. Michael Reuben

    Michael Reuben Studio Mogul

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    I have a different solution.

    Let's leave this thread on track and not get diverted into a potentially political discussion.

    M.
     
  16. Carl Johnson

    Carl Johnson Cinematographer
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    I bought the car from an Indiana resident and it came with Indiana plates on it. By registration I mean I went to the BMV, made them aware that I was now the owner of the car and that I wanted license plates. I guess I could have driven the car till the plates it came with expired but it wasn't worth the risk. The law says you have 30 days to register the vehicle. If I would have been pulled over past the 30 day limit with someone elses plates on the car getting the vehicle out of impound would have been more expensive than getting plates in the first place.
     
  17. terry deto

    terry deto Stunt Coordinator

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    quote:

    --------------------------------------------------------------------------------
    I don't get why some states also have to pay property tax (ie: reoccurring each year). Once you own something, you shouldn't have to keep paying the government for the rest or your life to keep it.
    --------------------------------------------------------------------------------

    yea, like land and a home. a family literaly could pay taxes for a hundred years, miss a payment and the goverment take it. I mean how long is enuff?
     
  18. MarcVH

    MarcVH Second Unit

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    One presumes that, even after the hundred years, the family will expect the government to continue to provide them with fire and police protection, road access, and other various municipal services.
     
  19. Thomas Newton

    Thomas Newton Screenwriter

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    Excerpts from The United States Constitution


    Article I, Section 9

    Clause 5: No Tax or Duty shall be laid on Articles exported from any State.


    Article I, Section 10

    Clause 2: No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
     
  20. Thomas Newton

    Thomas Newton Screenwriter

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