Can anyone tell me what this tax statement is saying?

Question

"Sales tax is not separately calculated and collected in connection with items ordered from ElectricKID through the Amazon.com Site unless explicitly indicated as such in the ordering process. Items ordered from ElectricKID may be subject to tax in certain states, based on the state to which the order is shipped. If an item is subject to sales tax, in accordance with state tax laws, the tax is generally calculated on the total selling price of each individual item, including shipping and handling charges, gift-wrap charges and other service charges, less any applicable discounts. If tax is separately calculated and collected in connection with items ordered from ElectricKID through the Amazon.com Site, the tax amounts that appear during the ordering process are estimated - the actual taxes that will be charged to your credit card will be calculated at the time your order is processed and will appear in your order confirmation notification."

i live in indiana and i'm ordering a $18 dollar shirt with $3 shipping and handling. so....do i get taxed? how do i know if my state requires tax?

Answer 1

The statement on you bill or confirmation states that they will collect sales tax if required by the state to which they are shipping the item.It would appear that the seller of this item would not be required to collect sales tax unless Amazon has a physical presence in Indiana.  My understanding if Indiana tax law is limited by it would appear from a little research they have a voluntary system like several other states in which you are asked to report all of your internet sales at the end of the year on your state income tax return and pay a 7 percent sales tax along with you income tax liability.  Now I have never had any tax payer volunteer that information in all of the years my state has been doing the same procedure.  I guess I just don't get clients that use the internet to purchase things.  

Answer 2

Yes, that means once you order it they will calculate the tax from your state and it will show up on your confirmation receipt.

Indiana has an 7% state sales tax. The tax rate was raised from 6% on April 1, 2008.

http://en.wikipedia.org/wiki/Sales_taxes...

Answer 3

The only way to know if you'll be taxed is either to find out whether this ElectricKID has any presence in Indiana, or to just wait for the bill.

Answer 4

you will have to pay the state sales tax for indiana. the law is usually if the company has a location in your state you have to pay that states sales tax.