Can anyone tell me why a company outside the United States can charge New York City sales tax? When I buy from Mud Hole, I am not charged tax.

First all sales tax is charged at 'point of possession' rate. If you buy something in Florida and pick it up there you pay Florida sales tax. If you buy something in Florida and have it shipped to you in NYS you must pay NYS sales tax. But it the company is not registered with NYS to collect and pay NYS all collected tax then they can not legally charge you sales tax. By law you are supposed to report anything you had shipped to you from out of state and pay the tax at NYS & County tax rate. If you pay tax on anything shipped to you that was taxed at a rate less than your states tax rate you are also supposed to report on your tax return and pay the difference between the two.

If the company you purchased from does not have a retail presence in your state they should not charge you sales tax - that is considered Interstate Commerce. On the other hand, many states require to pay the tax on items you purchase for use from companies outside your state, but you pay that directly to your state sales and use tax division, not the retailer you purchased from.

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Yep all depends on your state, Mich internet tax law went into effect this Oct 1, I now have sales tax added by mudhole or any other vendor that I place an order with now, Same with Amazon. Jaa