Tax On Amazon Purchases In CA Begins Sat.

[Scout26]

McMaster is going to send a check to...the state of Texas, or what? And then the State is going to mail a check to my City?

That's how it works in Illinois.  The retailer (both B&M and on-line) collect the sales tax and send it to the state of Illinois.  The state is then supposed to send the appropriate "cut" to the county and the city/town/village where it was collected.   However because the state is broke, they have been withholding payments to the counties and cities/towns/villages.  It's a mess.    

[MechAg94]

I believe that is how it works in Texas also.  I recall seeing a note in a local small town paper once that metioned how much sales tax was returned to the city that month. 

I think the states have or publish tax rate schedules based on addresses and zip codes.  Also, being outside the state, they may just charge state tax anyway (I don't pay city tax when I buy something at a store outside the city limits).  At least then they have the states off their backs.

[RoadKingLarry]

If States continue this trend, I'll fund the used market or grey market activities.

Oklahoma "requires"  sales tax to be collected on used sales as well. Even supposed to collect sales tax at flea markets and yard sales and the like. There is a provision to submit "casual tax". It isn't enforced, yet.

[charby]

Oklahoma "requires"  sales tax to be collected on used sales as well. Even supposed to collect sales tax at flea markets and yard sales and the like. There is a provision to submit "casual tax". It isn't enforced, yet.

Same for Iowa, there is even a spot on the income tax form to claim catalog and internet sales. No one fills it out that I know of.