tax experts: question on purchase from another state

wilser · #1 07-25-2008, 08:28 AM

I am given the option of purchasing an item from NC (I'm gonna pick it up since they're not far away and it's $1000 to have it shipped here!) and either pay the sales tax of 6.75% or fill out a sales tax exemption form and they waive it. I live in VA and from reading the laws it's not clear to me if the state allows the purchase of goods in other states with exempt sales tax. They do not have a local distributor, representative or any other presence in VA.

jkritchey · #2 07-25-2008, 10:48 AM

I think you would owe 'use tax' in Va. Enforcement of this tax is dodgy, and the internet has made it almost quaint, but big ticket items tend to play by the rules.

In other words, while they may sell it to you tax exempt, it might be with the expectation that you then pay use tax to Va. They may even report it. They used to threaten that a while ago. It tends to come up in conversations about buying furniture direct from manufacturers in NC for Va. residents.

It has been that way in the past in Va, although I'm not real sure now, so you may want to keep reading.

wilser · #3 07-25-2008, 02:03 PM

I found this page ...it seems to suggest I am not required to pay taxes for such purchase. It's not a very expensive thing. Costs about $6k, but it's enough that taxes would make a difference for me.

Can anyone tell me if I'm on the right track?

http://www.policylibrary.tax.virgini...OpenDocument%2