Sales Tax on Auction Item?

[NYRangers]

If I live in one state (PA) and I win an auction by a company in another state (IL), am I required to pay sales tax? Sorry for the naive question. Thanks.

[sylbry]

Re: Sales Tax on Auction Item?

It depends. If the auction company has nexus in PA then yes. Without getting into a discussion of nexus, minimal physical presence, Quill, ect... I will say they probobly do not and they should not be charging you sales tax. The flip side is you probobly owe use tax on the purchase in PA. Not that anyone really pays use tax though.

[earlywynnfan]

Re: Sales Tax on Auction Item?

Ohio came out last year and threateningly announced that they were going to track out-of-state purchases and start charging tax, and that we all should just admit on our taxes that we haven't been paying, estimate a total, and pay up.

Somehow, I forgot to do that on my last tax return.

Ken

[trsent]

Re: Sales Tax on Auction Item?

Ohio came out last year and threateningly announced that they were going to track out-of-state purchases and start charging tax, and that we all should just admit on our taxes that we haven't been paying, estimate a total, and pay up.

Somehow, I forgot to do that on my last tax return.

Ken

Ken, do states that have in-state sales tax require when a consumer buys an item out of state that they pay sales tax on the item to their own state? That would be really hard to track.

[earlywynnfan]

Re: Sales Tax on Auction Item?

Supposedly there is a rule, at least in Ohio, but yes, it's too hard to track. That's why it's generally ignored.

Ken