Quote:
Originally Posted by Leon
So in your scenario a person that waits long enough doesn't potentially need to pay sales tax? Sounds like a novel idea..
I might want to verify that lol.
So yeah, if I can buy a 50k card...and save 4500 tax to not have it for a year...or maybe longer, sure I would consider a vault...
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Each state varies, but I know that in CA that can happen, per the CA Dept. of Fee and Tax Administration:
"
Purchases for use outside of California. Your purchase of property (other than vehicles, vessels, or aircraft) outside of California is generally not considered to have been purchased for use in California and use tax does not apply if the property is:
delivered outside of California,
first functionally used outside of California, and
used, stored, or both used and stored outside of California for more than 90 days from the date of purchase to the date of entry into California.*
*This is exclusive of any time the property was being shipped or stored for shipment to California.
However, in general, if you purchase property outside of California and first functionally use the property in California, your purchase is subject to use tax. "Functional use" means the use for which the property was designed. You should retain documentation to show that the property was purchased for use outside of California. "
I guess the issue is whether it was put to functional use in the OR vault.
There's also an offset for sales tax paid in another state.