tag:blogger.com,1999:blog-1349717099151459420.post5596484089178268872..comments2008-12-01T15:28:11.234-05:00Comments on The Delta Quadrant: The Use TaxGeorge Weisshttp://www.blogger.com/profile/03249839510455272954noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1349717099151459420.post-56330842199185619122008-07-18T16:59:00.000-04:002008-07-18T16:59:00.000-04:00dad,responses1. yes. they also have an income tax...dad,<BR/><BR/>responses<BR/><BR/>1. yes. they also have an income tax and an estate tax and property taxes etc. so does Md. so does every other state. and all that is very nice. we are talking about sales and use tax. <BR/>true, parking and restaurant taxes are examples of rates where the sales tax if higher than the general rate. Md also has such cases. <BR/><BR/>Now by definition,I don't see hwow parking could be subject to a use tax...since you pay for the privlige to park in the place where it is. (how would you buy parking in MD that you "used" in DC? <BR/><BR/>I think your problem is that you think i mean to say that becuase dc has a lower sales tax then md-that things are taxed lower there-that is not what i mean to say-nor is it suggested by what i did say. <BR/><BR/>In any case-the point of this blog post is not to compare sales tax rates in various jurisdictions. Its to talk about use tax liability<BR/><BR/>2. not in the case of buying in DC restaurant and taking to Md. The way it works is that if you buy an item outside your state and use it in your home state you take a dollar for dollar credit on the SALES TAX YOU PAID. (the credit is not the sales tax you paid on what you used-the sales tax you paid on what you bought). if the sales tax on restaurant food in dc is way over 6% than even if you brought the entire thing home to MD you ate home with you your use tax liability would be 0.<BR/><BR/>3. the use tax in DC (i think) does not apply to special sales tax rates. So if you took out in MD and brought home to DC-you probably wouldn't need to fill out a form becuase theres probably a special use tax exception for such things <BR/>since they are not really sales taxes so much as special restaurant taxes.<BR/><BR/>4. see number 1.George Weisshttps://www.blogger.com/profile/03249839510455272954noreply@blogger.comtag:blogger.com,1999:blog-1349717099151459420.post-73499088553336819732008-07-18T12:34:00.000-04:002008-07-18T12:34:00.000-04:001. I realize there is a tax table that says the DC...1. I realize there is a tax table that says the DC sales tax is only 5.75%; however, they also have a 12% parking tax, a 14% hotel tax and a 10% restaurant tax.<BR/><BR/>2. Suppose you bought a meal in DC, ate some of it at the restaurant then took home part of it for consumption at home in Maryland. In that case, I guess you would have to allocate based on your estimate of how much you consumed in DC at the restaurant (where you paid 10%) and how much at home. <BR/><BR/>3. Another interesting case is where you live in MD near the DC line and you order take out from a business in DC. After the food is delivered to your house in MD from the business in DC, you take the food to a picnic at a park in DC.<BR/><BR/>4. In the Portland, OR/Vancover, WA metro area, Washington State has lower income taxes and Oregon has lower sales taxes. This actually creates, several times a year, Sunday traffic jams on the I-5 bridge that connects the two cities. They've been trying to figure out a way to resolve this for the past two decades or so without success.Martin Weisshttps://www.blogger.com/profile/16533725239111396803noreply@blogger.com