Buying on the Internet .... A tax cheat?

Shopping on the Internet without paying sales taxes makes you a tax cheat in almost all states


Buy anything on the Internet lately without paying sales tax? In all but a few states, you’re probably a tax cheat.

That’s right, even if Internet retailers don’t collect sales tax at the time of the purchase, you’re required by law to pay it in 45 states and the District of Columbia.

Here’s the problem for states: hardly anyone pays the tax, and there’s not much states can do about it.  Unpaid sales taxes are usually referred to as “use taxes” on state income tax returns.

.... Use taxes apply to purchases made over Internet, from catalogs, television and radio ads and purchases made directly from out-of-state companies. State officials, however, complain that few people pay these taxes, Olsten said.
Comment: I wouldn't even know how to file "use taxes" for Minnesota.


  1. It's on your state income tax form. You can record the amounts and do it.

    I've not yet. There is also a page on Minnesota's efile.

  2. My guess is that Turbo Tax just skipped over it or perhaps I missed it. I'll need to be more diligent next year.

  3. Required in SC. I pay the tax on anything I purchase online that will be used in the state. If it's a gift for an out of state friend I don't include it. I have a spreadsheet for recording the purchases.


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