When the state cannot collect a sales tax from a seller in another country (or another state), it can impose a “use tax” upon the purchaser often at the same rate as the sales tax. And I believe this is true in a private transaction between a buyer and seller via Audiogon although that transaction and the resulting use tax is seldom ever found. The buyer is theoretically supposed to report the transaction to the state - never happens. It was pure (bad) luck that the tax collector found out about it. It was probably an error in valuing the amp by a little bureaucrat in the Tennessee department of revenue, not a Qnon conspiracy of Democrats. A lot of venting going on in these posts. Years ago I purchased an $8,000 pair of Focal speakers for $5,000 from a Canadian dealer. I may have paid customs on it, I don’t remember. But years later the California Board of Equalization caught up with me - the purchase was traceable - and I had to pay a Use Tax based upon the $5,000 purchase price, plus interest and penalties. No Big Brother paranoia was involved here.
Received a Bill for State Tax on An Amp Bought in Canada Last Year
Wow! The envelope said “Dept of Revenue” so I figured it may be my car tags due. I opened the envelope to find a statement that I owed $665 for “use tax” on an amp I bought last year in June. Shocked is an understatement. Yes, I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax. However, the amount they are basing it on is over double what I paid for the amp. But had to send it to Don Sachs for repair a few months later. So I wonder if they are seeing that as a separate purchase rather than a repair. They even charged me $43 interest which is more ridiculous IMO.
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow