State and Local Tax Outline
Downloaded From OutlineDepot.com
Outline
Wednesday, September 28, 2011
8:09 PM
State and Local Taxation
Hellerstein
Fall 2011
Chapter 1
1.
a.
INTRODUCTION
Basic Info
1.
Sales and Use Tax
a.
USE TAX
1.
Tax on storage, use or other consumption in the sate of tangible personal property.
2.
Assessed upon “tax free” personal property purchased by a resident of the assessing state for use, storage, or consumption of goods in that state regardless of where the purchase too place.
3.
The use tax is typically assessed at the same rate as the sales tax that would have been owed (if any) had the same goods been purchased in the state of residence. Typical "tax free" purchases that require payment of use tax include those done while traveling (for things carried or sent home), through mail order, or purchases via telephone or internet. 4.
HYPO: A car. Once you get back to the state, first thing you must do is register it. If you tell them that you paid a sales tax, they credit you for the sales tax up to the amount you would have paid in sales tax in the state of domicile.
a.
However, it is these registered goods that make it easy for the state to collect. If there is no registration requirement it is VERY hard to put the onus on the state to collect these taxes.
b.
Therefore, companies like Amazon do not need to collect the tax, it can be up to the consumer to pay a use tax.
5.
HYPO: if you are Wal Mart and you want to compete with Amazon what do you do?
a.
Create a separate entity – i.e. Walmart.com, to sell the book.
Chapter 2
2.
a.
CHAPTER 2: JURISDICTION TO TAX
Section 1: Due Process And Commerce Clause Restraints On State Taxing Jxn
1.
Similar concept to jxn over person for purpose of non resident jxn, same inquiry. 2.
DP: Minimum contacts, purposeful availment, and NO requirement of physical presence, fairness notion/ notice, can’t offend traditional notions of fair play
Downloaded From
Outline
Wednesday, September 28, 2011
8:09 PM
State and Local Taxation
Hellerstein
Fall 2011
Chapter 1
1.
a.
INTRODUCTION
Basic Info
1.
Sales and Use Tax
a.
USE TAX
1.
Tax on storage, use or other consumption in the sate of tangible personal property.
2.
Assessed upon “tax free” personal property purchased by a resident of the assessing state for use, storage, or consumption of goods in that state regardless of where the purchase too place.
3.
The use tax is typically assessed at the same rate as the sales tax that would have been owed (if any) had the same goods been purchased in the state of residence. Typical "tax free" purchases that require payment of use tax include those done while traveling (for things carried or sent home), through mail order, or purchases via telephone or internet. 4.
HYPO: A car. Once you get back to the state, first thing you must do is register it. If you tell them that you paid a sales tax, they credit you for the sales tax up to the amount you would have paid in sales tax in the state of domicile.
a.
However, it is these registered goods that make it easy for the state to collect. If there is no registration requirement it is VERY hard to put the onus on the state to collect these taxes.
b.
Therefore, companies like Amazon do not need to collect the tax, it can be up to the consumer to pay a use tax.
5.
HYPO: if you are Wal Mart and you want to compete with Amazon what do you do?
a.
Create a separate entity – i.e. Walmart.com, to sell the book.
Chapter 2
2.
a.
CHAPTER 2: JURISDICTION TO TAX
Section 1: Due Process And Commerce Clause Restraints On State Taxing Jxn
1.
Similar concept to jxn over person for purpose of non resident jxn, same inquiry. 2.
DP: Minimum contacts, purposeful availment, and NO requirement of physical presence, fairness notion/ notice, can’t offend traditional notions of fair play
Downloaded From