Use Taxes

[daleduke17]

Don't know what they are? Well, basically the local government where I live has found it useful to basically tax people for purchasing cars out of town.

Say I buy a car in Chenoa (which I did). Since I'm a resident of Bloomington or Normal, I got a bill in the mail from the Bloomington-Normal Use Tax Commission telling me to pay .5 percent to the BNUTC (as it only is applicable to residents). The in-town dealers automatically charge this tax (as do some out of town dealers). Anything with a title is eligible for this tax.

Here is some information about the local use tax. The part about "collection from out of town dealers is discretionary" is a load of crap. They'll do it. I've been hit two out of three (ain't bad - *snicker*) times. The third time I believe the dealer already charged it.

It makes no sense to me how the government will allow this to go on. It feels like a penalty for not shopping in the city. So sorry to want to go to a dealer I've been to in the past, or to one with a great reputation.

[Pedersen]

Sales and Use Taxes, one of the greatest joys ever devised by local governments.

Sales Tax: Charged at time of sale to collect taxes for use of governmental utilities (e.g.: roads, police, fire).

Use Taxes: Charged after the sale for the same things.

Here's the fun part: The local governments wanted to charge sales tax to local residents for out of state purchases. The federal government told them no. This left a major loophole in the law: A resident of a town could legally place an order through a catalog and receive that item from an out of state company with no presence in the state. The state couldn't charge the customer the sales tax, and it couldn't collect it from the out of state company.

Naturally, when they saw this loophole, the various states acted quickly. Now, in pretty much every state that has a sales tax, you will find they also have a use tax. This is for items which are imported into the state for use by a resident of the state for a non-sales tax exempt purchase but for which no tax has been paid.

Note that, in this case, imported is being defined as "Somebody brought it into the state, whether it was the resident, or a shipping company, or the post office, etc".

There's nothing actually illegal about it. The state can define whatever taxes it wants on its citizens. Legally speaking, you're obligated to report the uncollected taxes, and then pay them. The fact that extremely few people do is irrelevant.

That's the logic behind it all.

My response to this is "What a load of horseshit." I cannot stand how the various governments keep looking for more and more ways to take money out of my pocket to fund whatever programs they want to fund. Drives me nuts.

[Slytovhand]

And what happens if it's an item you can't get locally???

Yep - stupid!!

[Pedersen]

If you can't get it locally? Well, you're still going to use it locally, right? And the police still get paid to do their work as regards your home, as do the fire dept. And the roads were used to deliver it.

Remember, I said it's horseshit. I still say it's horseshit. I'm just explaining their logic.

Oh, here's a fun one from a few years ago: The state of Florida was planning to tax home and business networks.

[protege]

That sounds like something the city of Pittsburgh would do. Not long ago, they tried to implement a commuter tax. That is, people who work inside the city limits, but didn't live there...would be taxed. Didn't go over well, since the people subject to the tax couldn't *vote* on it. Yep, taxation without representation!

Because of that, it's no wonder why many firms said "Fuck you," and moved just across the city line...my employer being one of them