Refund of Sales Tax

MrsHyphenated · June 2014

Does anyone know if sales tax can be claimed and refunded if you are a non resident in that State? For example, DS and I went to Disneyland... looking at the receipts.. wow did we get dinged with tax from hotel bills down to Boba Fett merchandise. Checking to see if anyone's ever looked into this.

Thank you in advance!

hoffse · June 2014

I've never looked into it, but I would be really surprised if this worked. Sales tax is a quasi-form of consumption tax.... In that the tax trigger is choosing to buy something. You can avoid paying the tax if you choose not to buy that item.

I have read reports of some Europeans trying to claim state sales tax refunds when exiting the US - because in Europe you can claim back your VAT on purchases of unopened stuff (not hotels or food though, since that's considered "consumed" while you are visiting). Needless to say, it never works for them. Granted, they are trying to claim a state tax refund from the federal government... but I would still be surprised if it worked when trying to claim it from one state to another.

Also - I know a lot of states have different hotel tax rates for in-state residents and out-of-state residents. Seems like it should be unconstitutional, but it's not.

So yeah... you can try, but I would be pretty shocked if it worked.

ta78 · June 2014

I don't think so because you are usually able to not pay sales tax when you shop in other states that have it. They have you fill out a special form when you show them your drivers license. At least I know as far as retail stores that's how it works. Not sure if hotels are different.

smerka · June 2014

The only thing I can think of is you can deduct either sales tax or state and local income tax on Schedule A. If you live in a state with no income tax, you could claim the sales tax. If your state has an income tax, chances are pretty high you'd be better off claiming income tax.

formerlyGDaisy09 · June 2014

Since I live in the no tax state...*Live Free or Die*, I've asked about this @hoffse is right I think, since you're choosing to buy the item where you buy it, it's difficult to try to get a refund on it, because you could choose not to buy the item. this is one of those times my financial advisor would probably say that it's a gray area and would probably make you more likely to get flagged for an audit.

now, we are sales and income tax free, but there are still taxes on service industry things (hotels, restaurants...).

I have avoided sales tax in other states by having whatever item i was purchasing shipped to my home rather than taking it home that day (my wedding dress...saved $50!). I've also started avoiding making purchases out of state...I go online and order things once I'm home.

KatieCutie05 · June 2014

No because it has to cover the cost of everything like manufacturing and production to get that product where it is. Its the same reason why i can drive to a state with no sales tax and buy a computer to save 100 bucks in tax. It has nothing to do with where you live. just because you live in say Deleware, it doesn't mean you pay no sales tax ever. Its where you buy it, not where you live.

MrsHyphenated · June 2014

Thank you for your replies! I live in Canada and there are times when showing my Alberta drivers license (such as at the Premium Outlet Mall in Tulalip) allows the retailer to not charge me any tax. But the consensus response is that there is no real way to claim for this. Oh well.. it's a good way to help the "Mickey" state

BlueBirdMB · June 2014

You definitely cannot "claim" sales tax. We only "claim" income tax. A refund happens only if you ended up paying more income tax than needed.

Refund of Sales Tax

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