Colorado Use Tax

[Irving]

Totally understood. It's like telling someone that they drive 5 over all the time and never have a problem.

[Jer]

There's an awful lot of posts here that might indicate most consumers don't realize they're supposed to be paying tax on ALL online purchases. This is nothing new. Now retailiers are required to send notice because the next step is a big time crack down since it's harder to plead ignorance now that these businesses are doing the .gov's bidding for them.

[kidicarus13]

No one wants to be a test case. The State wants what they feel they're due. Like gambling... do your taxes based on what you can afford to potentially lose.

[hurley842002]

I'll say it again, screw Colorado!

[Circuits]

If the state receives a text-based email from New Egg saying that Pete Jones spent $99 on computer supplies, the State would have to somehow build a database and properly associate the purchase with Pete Jones’s tax return—without benefit of having Pete’s social security number—because New Egg doesn’t collect SS# as a condition of retail purchases.

They'll have a list of names and addresses, which they can pretty easily check against state income tax returns, computerized property tax and deed records, wage withholding, etc. That doesn't get them all the way to Pete Jones, but it wouldn't be hard to follow up on if Pete has things shipped to his home or business addresses.

I'm sure the state doesn't really start checking at all until the amount they figure to collect is up in 4 figures, or at least past the mid-threes, at which point they might assign an investigator to match those purchase reports against those tax and property records. Anything much less would cost the state more to try to collect than they'd get in tax, interest and possible fines.

If you bought $10,000 worth of crypto mining hardware from newegg, for instance; or bought a $20k rare book online, the state might well be interested in spending some time running down that $290 or $580 in taxes owed. $2k on a new gaming PC? probably not so interested in spending resources to collect the $58.

[Eric P]

Again, what does the state do to deserve the revenue from out of state sales?

Abosulely nothing.

[hurley842002]

Again, what does the state do to deserve the revenue from out of state sales?

Abosulely nothing.

Colorado is run by Democrats, therefore they are "entitled" to the revenue.

[Irving]

Does anyone know of any other states that require this?

[Grant H.]

Does anyone know of any other states that require this?

From http://www.salestaxinstitute.com/Sal..._sales_use_tax

Currently 45 states plus the District of Columbia impose a general sales tax.

Snip...

Currently, every state that imposes a general sales tax also imposes a use tax.

From http://www.salestaxinstitute.com/Sal...rce=stiwebsite

The sales tax is imposed on retail transactions. It applies to all retail sales of tangible personal property, and in some states services, in the state. The use tax is imposed on consumers of tangible personal property that is used, consumed, or stored in this state. Consumer’s use tax applies to purchases from out-of-state vendors that are not required to collect tax on their sales. Sales and Use tax generally applies to most leases of tangible personal property. The sales tax and the use tax are "mutually exclusive", which means either sales tax or use tax applies to a single transaction, but not both.

[Irving]

So 45 out of 57 states are liberal cesspools?