Reply to post: Re: Some research was done

If you bought a dildo in Denver, the government must legally be told

tom dial Silver badge

Re: Some research was done

"is there a requirement in *any* state tax law that the resident shall be responsible for determining and paying this value $y?"

Yes, there is, although I believe almost nobody actually pays it except on things like cars and boats that must be licensed by the state. Colorado's objective is to obtain information it can use to enforce their tax. It is called "use tax" and generally is charged at the same rate as the sales tax that would be charged for an in-state purchase. I know of it specifically only from Ohio and Utah, and now Colorado, but believe it to be somewhere between common and near-universal. States may vary in how they handle local tax add-ons.

The amount reported to the state doesn't have to be right, but those whose aggregate purchases are reported should expect to be questioned if they fail to file the use-tax return (which may be included on the state income tax return) or report much less than was reported to the state. The workability of the suggested circumvention might vary, but surely would risk other offenses like fraud, if not now, then after the various legislatures wake up to the possibility.

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