I mean, there are countries where tourists don’t have to pay tax on top of items (meaning they pay for it tax free given if they presented their passport upon purchase proving they’re merely only a visitor, that won’t work on expats though). There are countries who have tax refunds when visitors are leaving (basically reclaiming VAT whilst at the airport), they have already purchased the goods with VAT paid but gets refunded upon them departing.
Actually, it depends on the state/city. There is no federal sales tax; all sales taxes are determined at the state and municipal level and are only charged at the final point of sale. Some states or cities allow for limited versions of what you’re talking about; Washington State rebates sales taxes for Oregon residents.
However, why isn’t this typical across all states? It turns out that taxes tourists is generally more popular than taxing residents. This is especially true if the tax is enacted by referendum. For instance, a lot of stadiums are publicly funded via hotel room and rental car taxes.
IMO it should be the opposite: You should get a sales tax exemption if you’re a resident. The reason tourist-heavy areas have high sales tax is to capture more nonlocal money they can use to support local services.
Yeah, sales taxes is generally bad because it is regressive. The fact that it can capture revenue from non-locals is one of the main benefits.
Sales tax is a state deal not federal. Not all states have sales tax. Visit Oregon, for instance.
But I believe the idea is that the transaction, regardless by whom, was in the state. And the state wants a cut. The state don’t care if you are taking the goods out of the state or not. The state wants its cut.
Not on everything. If an Oregonian goes to Washington and shows ID for non consumables it’s not taxed.
Three states (Louisiana, Texas, Washington) do that. Others don’t.
As to why, the simple answer is the state government made a law. They get to do that because the state constitution says so, and it doesn’t conflict with any federal law. If you keep asking why, you’ll usually end up with a root cause like the people who have power want it that way, or at least don’t especially want it a different way.
The fact that other places do it differently has nothing to do with anything.
Sales tax in the US is also not a VAT. And every state and municipality are free to have their own rules. My town where I live and the next one over have different sales tax rates (on top of state sales tax), which is part of the reason why it won’t be on the price tag. It’s just not practical.
I fundamentally disagree that it is impractical not to put it on the price tag. Every store prints their own price tags and puts them either directly on the item, or on the shelf. It wouldn’t be hard to just make that price different to reflect the tax. We already do it with gasoline.
Every POS is also calculating those taxes anyway to print on your receipt. The only reason prices on tags don’t include tax is because it’s not required and smaller number is better.
I guess that’s fair, and I really need to learn to not make off the cuff statements without going into details on Lemmy :)
I really had in mind more things that have prices printed on, etc. I definitely agree we would be better off including tax on price tags.
I agree it shouldn’t take that much effort to include it in things that have dynamic displays (like gas), but I suspect the reason for that is part inertia, part confusion when it’s included or not, part nobody wants to look like they raised prices.
ND, TX, WA and LA will reinburse tourists for paid taxes.
There are countries who have tax refunds when visitors are leaving (basically reclaiming VAT whilst at the airport), they have already purchased the goods with VAT paid but gets refunded upon them departing.
The UK used to allow VAT refunds for tourists, but Great Britain stopped doing it a few years ago. Now tourists pay the VAT just like residents do. Northern Ireland still allows it (for non-EU residents, I believe.)
The tax is meant to be on the business selling the product, not the person buying it. There are added rules requiring the tax to be added on after the sale price so that it remains a visible tax, thus making the public more likely to support repealing it.
‘sales tax’ is collected and remitted to the state by merchants, but paid by the customer.
It’s silly to insist it’s being paid by either the merchant or the customer. Regardless of how you conceptualize it, the result is the same.
The entire revenue is paid by the customer. Sales tax is itemized out. It’s been intentionally pushed towards the consumer as to prevent it being known as a business tax.
You can buy stuff from colorado online and not be taxed, like andromeda insights, like if I buy from california there is no sales tax
Online sales tax is charged if the merchant company has a physical location in the state the purchase is being made.
