what is this "consumer's use tax" about?

[ant]

Uh...so I'm doing my taxes, right, and everything's going smoothly until I go online to do my state taxes and I hit this thing about the Consumer's Use Tax:

If, during the year, you purchased merchandise by telephone, Internet, or television, or you purchased merchandise while outside of Virginia and paid no sales tax, you will need to pay Consumer's Use Tax. If, during the year, you purchased more than $100 in merchandise by mail and no sales tax was charged by the business, you will need to pay Consumer's Use Tax on the total purchases. The tax is 4 1/2% of the total cost price except for food purchased for home consumption. The tax rate on these food purchases is 4%.

What the...? Am I seriously supposed to go back through all my credit card statements for the year and add up all the books/cds/gifts I've bought online? Do I have to consider the $0.99 songs I've bought through iTunes, too? This is absurd. I must be misunderstanding this...please tell me I'm misunderstanding this.

(And what if I bought something online but had it shipped to another state as a gift?)

The weird part is that I can't see any mention of this thing on the paper form. It seems like if I just file hardcopy I won't have to deal with this. That can't be right...

:crazy:

Anyone know what the deal is here?

[stepnw1f]

1. I believe your not obligated to

[ant]

2. really?

What other parts of the tax form are optional? ;)

[Wwagsthedog]

3. It's obviously another regressive tax on us little guys

People who can afford them don't purchase luxury cars on the internet. And they don't purchase affordable used books there either. Do the hardcopy.

[ant]

4. I actually thought the opposite

I figured if I'm buying things online and therefore avoiding a sales tax, I'm probably avoiding a tax burden that those who don't have home computers or internet access still have to pay.

I can't really argue that this is unfair, it just seems like kind of a pain in the ass to follow. If I had known ahead of time I might've kept a little excel file on all my purchases - I'm a big geek and would've probably enjoyed that (I enjoy doing my taxes, too) - but to hit me with this now seems ridiculous.

[FloridaPat]

5. There are several states with that on their income taxes.

I thought there was a federal law about no taxes on the internet.

[unblock]

6. there's no internet SALES tax

the tax is on USING tax-free goods purchased outside the state (or on the internet).

it probably runs afoul of interstate commerce laws, but i don't think it's been challenged yet.

new jersey has this, too.

[German-Lefty]

7. I know in Texas

You're supposed to pay sales tax on things you order from other states. If a company selling the end user a product has no office in your state, then the consumer is supposed to tell Austin and pay taxes.

Of coarse there is no way they can force you to do it so most people don't bother.

Many say "well the rich cheat on their taxes all the time, so I should too."

The country needs to think of setting up US wide sales tax system. If we in the EU can do it, you can too. It doesn't have to be the same tax for each state (or area), but there needs to be a set of laws governing sales into states where you have no office.