PWCC Auctions - Mystery Bid Post Auction?

[jayshum]

Originally Posted by BobC

However, there is a potential grey area in regards to triggering use tax when it comes to taking things out of a vault and having them sent to a state that does have a sales and use tax. If you buy something, have it put into into a sales tax-free vault, and then right away take it back out of the vault and have it sent to your home, that should most definitely trigger a use tax liability if you reside in a state with a sales tax. But what if you wait 6 months before taking an item out of a vault, or a year, or 5 years? To my knowledge, individual states do not have general or specific time threshholds on how long you may have owned something like baseball cards before it is exempt from use tax when bringing it into a new state. Think of this. What if you lived in a sales tax free state your entire life, and had all your furniture, clothing, and belongings purchased in that same state, so you never paid sales tax on anything. And then you move and take all your belongings, furniture, and clothes with you to your new home, in a state that does have sales tax. Do you now have to suddenly pay use tax on everything you had acquired over your entire lifetime to the state you just moved to? Most likely not. But what about on a new living room set you purchased in your old state with no sales taxes the week before you moved to your new home state? See how complicated this can get? This is again a reason to review your own particular case with your accountant or tax professional if you are planning on removing items from a vault, and to also review the sales and use tax laws for the applicable state you're going to move those items to.

I would think that the use tax would only be due on purchases you made while a resident of the state so anything you owned prior to moving to a new state with a use tax would not be subject to the use tax.