Top 7 Myths About Sales Taxes
Myth # 2: Internet purchases are not subject to sales tax
False. Many times you wont be charged sales taxes when you purchase items online, but this doesnt mean that you dont owe tax on the purchase. Most online retailers only charge sales tax in certain states because of a concept called Nexus. This federal precedent only requires retailers to collect sales taxes in states where they have a physical presence.
However, consumers are technically supposed to report these purchases on their state income tax return and pay the sales taxes at that time. There are several pending court cases and even a proposed federal regulation aimed at changing these Nexus laws, so tax-free online sales may soon be a thing of the past.