Quote:
Originally Posted by Exhibitman
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.
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Great post. Was typing my own and didn't see yours. And as you said, this varies by state. But it clearly demonstrates that you likely should be able to get around sales/use taxes and possibly still be able to bring things to your home eventually. Just need to check what the vaults may or may not want to do. And just don't assume what they tell you is 100% accurate.
And as for "functional use", I would think that the safeguarding and safekeeping of your valuable assets would be an adequate functional use. And if you ever happened to also have the vault service provider take and sell something from your vault for you, that should clearly demonstrate another functional use of the vault.