JimBoylan wrote:Gilbert B Norman wrote:the Commonwealth is willing to support a train to take shoppers to Wannamakers and Strawbridges in Phila - not to Macys and Gimbels in New York.
Since they are now all Macy's, does it still matter?
Sure does, Mr. Boylan.
Even if all the stores I noted are now part of the Macy's chain (I subsequently learned that Gimbels is kaput), I don't forsee too much Sales Tax revenue from a NYCity sale finding its way into any Pennsylvania coffer. Further, the employee at the NY store serving that State supported rail passenger from Lancaster is not likely paying any income tax to Pennsylvania,
Even for that one taxpayer in a million who dutifully files a Use Tax Return, most states will allow a credit against Use Tax liability for Sales Tax paid to another jurisdiction on such purchases that the Use Tax is due.
A further note; Wilmington DE merchants have in the past spossored 'tax free excursions' from New York using Amtrak as the carrier. True, Delaware does not impose Sales Tax upon the sale of tangible personal property at retail, but New York certainly does impose UseTax on same. Only problem is that, absent the sale of titled property such as an auto, enforcement is quite difficult. The best I've seen for enforcement is some states (Indiana for one) have a line item on their Income Tax Return (IT-40 for Indiana) for Use Tax due - along with the notation "You must make an entry on this line even if ZERO". Now the taxpayer filing that return, if in fact having a liability, and not reporting such has filed a false (note my avoidance of the term fraudulent) tax return.