Question:

Is there tax on this online purchase?

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I live in California and I'm buying a product online from a warehouse in Delaware.

The company has no warehouses in California

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2 ANSWERS


  1. Not having a warehouse in CA isn't the test that has to be met for it to be tax-free.  If the company has ANY nexus in CA, such as an office, warehouse, mail drop, etc. then the sale is taxable.

    Bear in mind that even if they don't charge the sales tax, CA has a Use Tax (same rate as the Sales Tax) that you are legally required to pay.  The states haven't yet figured out how to enforce that (except on tobacco purchases) but if they do, be prepared to start paying it!


  2. No, there should be no sales tax for a state-to-state purchase like that. The problem is, if they were to charge you sales tax, which state would get it? So, since the state governments can't figure that out, they simply don't charge sales tax.

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