Thursday, November 27, 2008

Almost never enforced but you still owe the sales tax

on groceries bought out of State.

AP trying to take the fun out of Black Friday.

Link

Farr said the tax can be paid with forms that can be obtained online or at department offices.

"You can file it as regularly as you would like, but at least once annually," he said.

He said "people are surprised" when they are told that out-of-state purchases require a tax filing.

"We do perform use tax assessments and investigations," he said. "Most people's defense is 'I didn't know.'"

He said that although grocery purchases "may not be an area of focus" for the department but failing to pay it becomes a tax liability and "should they ever be audited that could be something that is looked at."

The Revenue Department has programs in place to share information with other states about the sale of aircraft, boats, ATVs and jewelry, according to Joan Cagle, tax audit supervisor for Tennessee. The department also has worked with several furniture and carpet dealers in other states to help track out-of-state sales.