Why do some on-line stores charge sales tax and some don't?

Question

I just tried to order something from ToysRus on-line and they want to charge state sales tax. Why do they charge tax and other on-line stores don't. Does the money really end up in my state?

Answer 1

well ...... i think they just want to make more money!!  my loving husband will say the same.:)

Answer 2

It depends on where the store is licensed too...for example, Modells will charge tax if you live in MA, and a couple of other states, because that is where the stores/shipping centers are located, I guess. But I also wondered the same thing until a couple of days ago. So the answer to the state tax holiday is...shop out of state online.

Answer 3

The online store is required to charge sales tax, and remit it to your state, if they have a physical presence (like a store, distribution center, some kind of office) in your state.  That's why for example barnesandnoble.com charges tax in most if not all states, but amazon.com doesn't in many states.

Answer 4

Yes, its by state. I'm in Texas, and can buy things from New York without paying tax, but if I buy from an ebay store located in Texas, or from Woot.com, they have to charge me state sales tax on it.

Answer 5

If the store is located in your state then they charge you tax but if it is located in another they don't