Can i get a refund on tax i paid on purchases out of my home state?
I live in New Mexico but often purchase in Texas (Retail stores) since it is nearby
- Cathi KLv 77 years agoFavorite Answer
- BabeLv 77 years ago
The store is required to charge sales tax by the state in which it operates, regardless of where the customer lives.
If you are in business yourself, and have a resale license, you might take a copy of it with you to purchase supplies tax free, but you would have to pay the use tax to your state when the items were sold. You would delay paying the tax, but not avoiding it.
But you are just buying items retail for your own use.
If you are able to itemize your deductions instead of taking the standard deduction, you can opt to use sales taxes paid instead of state income taxes paid, but that is the only place you might get any kind of 'refund'. Neither New Mexico nor Texas will refund sales taxes on purchases made out of state. (That is why tourism is such a great moneymaker for states!)
- Bostonian In MOLv 77 years ago
Sales taxes are collected at the point of sale, i.e. the store where you are shopping. Where you reside is irrelevant.
One state -- Washington -- does allow tax free sales to residents of certain localities, generally bordering states and Canadian provinces, at the discretion of the retailer. Due to the record keeping requirements for the retailer, many opt to not participate.
While you technically owe the NM Use Tax on the goods, that's reduced by the TX tax paid. As the TX tax is higher, no NM Use Tax is due.
- NALv 77 years ago
1. You were supposed to pay "use tax" to New Mexico.
2. The standard table for itemizing already includes all estimates.
3. There is no other refund.
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- StephenWeinsteinLv 77 years ago
Not if your make the purchase in a state in the U.S.
However, it may be possible if you make the purchase in Canada or Europe.
- ?Lv 77 years ago
No, sales tax is not refundable.
- troLv 77 years ago
- JudyLv 77 years ago