We are all way to familiar with sales taxes, but what exactly is a use tax?
The state of NC would love for you to be better informed of your use tax responsibilities. If you buy something outside of NC and bring it/ship it here for use, then you are liable for use tax. It is the same rate as the sales tax, and submitted in the same way.
If you are a business you would submit the use tax when you submit your sales tax due each month. If you are an individual the state of NC has made it easy for you to submit your use tax on your personal tax return. You can either use a table to estimate your use tax liability (based on your income level), or you can report actual out of state purchases.
This is becoming more and more of an issue for states as they lose more money to out of state retailers with an online presence like Amazon. But don't think that just becuase Amazon doesn't charge sales tax on your purchase that you are off the hook. According to the law, responsibility for paying the use tax on that purchase lies with you, the purchaser.
Article
Sales and Use Tax Home - NCDOR
Subscribe to:
Post Comments (Atom)
Disclaimer
The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
0 Response to "Use Tax...What's the Use"
Post a Comment