Use Tax for Non residents

I am a New Jersey resident who is currently working in Virginia on a 179 day work detail. I am a federal employee (if that matters). I know if I buy things over the internet
and have them sent to my NJ residence I have to pay use tax to NJ. I am thinking of buying about 10K worth of merchandise over the internet and having them delivered to my PO Box at Ft Belvoir, VA. The merchandise is rare coins. Would I legally owe use tax to Virginia? I know I don't have to pay use tax to NJ if the goods don't enter NJ for at least a year after purchase. I am not a Virginia resident and I am living in different hotels during my stay. Aside from my PO box I don't have an address in VA that I stay at for more than 19 days at a time. dennis
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Be careful, you could be a resident of both states. I am not as familiar with VA rules for being a resident. If you haven't abandoned your NJ residence, you are still considered a NJ resident. Generally, your presence in a state is what counts. Not how long you sleep in a particular abode. Generally, a resident state will allow a credit for use tax, if it was paid to the other state. However, a differential in rates between the various states can cause a residual amount to still be subject to use tax. ___________________________________ <<< Benjamin Yazersky, CPA [NJ & NY] >>> -----> real address on hobokeni or hobokenx <-----
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

I haven't abandoned my NJ residence. I voted by absentee ballot and I am home at least every third weekend.

I am essentially there for business only. Even on weekends when I don't go to NJ I normally go to Maryland or DC.

I don't have to worry about paying any use tax to NJ (My residence) because the items I buy will not enter the state of NJ until at least 1 year after I take delivery of it. The question I have is about pay use tax to a state that I am physically in but not a resident.
Dennis
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Dennis G. Rears wrote:

Use tax is imposed for the privilege of using, consuming or storing taxable property within the state. It sounds as though you are purchasing the coins for use in New Jersey, not Virginia. So you would owe use tax to NJ, not VA, even though you take possession of the coins in VA. However, you cannot avoid the use tax altogether by purchasing the coins for use in NJ and then keeping them for a year in VA. If you store the goods in VA, you owe use tax to VA. Katie in San Diego
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
You have to pay sales tax to Va if you buy something directly in Va, even if you aren't a citizen...so it makes sense you have to pay Use Tax to Va if you buy something while in the state. I think it's 4.5% but it's been a few years since i was there. When you move to NJ, you might have to pay the difference (7 - 4.5 = 2.5%) to NJ, that I'm not sure about. Dan
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Dennis G. Rears wrote:

We should probably also mention that if by chance the vendor happens to be located or have a physical presence in Virginia, VA sales or use tax will apply to the purchase. The fact that the purchase is made over the internet has no bearing on this. Neither does the residence of the purchaser. If the product is shipped from Virginia to a Virginia address, Virginia sales tax will apply, the same as if you had walked into a Virginia store and purchased the coins. If the product is shipped from outside Virginia to a Virginia address, and the seller has a physical presence in Virginia, Virginia use tax will be collected by the seller. If you pay Virginia sales or use tax on the purchase, and take the coins to New Jersey less than a year later, New Jersey should give you credit for the Virginia tax you paid. Katie in San Diego
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.