How does taxes on online purchases work

[footfree]

 I wanted to order a pair of jeans from this company  and during the check out process they added on sales tax.Last time I ordered from them there was none so I emailed them and they said they did have a store here where I live.Yet I cant find it on their web site nor can I find it on Google.However I did find boutiques that sell their products and even some department stores.But I thought they had to have a actual brick and motar store with "their" name on it in order for them to charge sales tax?Am I wrong?I emailed them back for the address of the store.I cant understand why they wouldn't have it listed in their store locator button?

[ksedwar]

However I did find boutiques that sell their products

 

That's why. That falls under the "Physical Presence in the State" internet/mail order tax law.

• a warehouse in the state
• a store in the state
• an office in the state, or
• a sales representative in the state.

There is also a law called 'Affiliate Nexus' that enables states to collect tax under a wider set of circumstances.

It's becoming more common. States are getting more aggressive about making retailers collect tax on internet sales. More here: Internet Sales Tax: A 50-State Guide to State Laws.

[footfree]

Thanks - I hadn't heard about that , it's nice to know.I guess we all knew that not paying taxes wasn't going to be around forever.The only people who are exempt are those who make under $1 million in annual revenue sales.So now I'm curious about tax free weekend,does that apply to online out of state businesses?

[ksedwar]

For the tax free weekend online... yes and no? It probably depends each states laws.

 

From Amazon.

Note: Sales tax may still be charged on items ordered from other sellers that list products for sale via the Amazon.com website. If your items are fulfilled by a seller on our website, you must contact the seller directly. You can find more information about contacting sellers on our Contact Third-Party Sellers Help page.