| I purchased/ordered a mattress at store in NC and asked them to ship it to my family in CA, they didn't charge any tax. on the receipt it says "Tax exempt: interstate gift send", what does it mean?=> A gift-send transaction involves a customer at a state retail store who requests that merchandise be sent to an out-of-state recipient (other than the purchaser). With respect to merchandise shipped by a NC vendor to an out-of-state , in this case CA state, recipient, your family in CA, designated by its customer , you, in NC: If the vendor is obligated by an agreement to deliver the mattress to your designee outside NC and as you are within NC when the order for the property is placed, the sale will generally be taxable UNLESS both title to and possession of the property , mattress, pass outside NC. In your case, the seller in NC does not collect sales tax.
do I need to pay any use tax after that? if so who should pay for it? me or my family at CA?=====>It is up to you. In some cases, retailers must report use tax, rather than sales tax, to the CA Board of Equalization. The most common example of a purchase subject to the use tax is a purchase of an item for use in CA from an out-of-state retailer. Out-of-state retailers who are engaged in business in CA are required to collect the use tax, whenever applicable, from the consumer, at the time of the sale; but Some sales and purchases are exempt from sales and use tax.In general, you must pay CA use tax when you purchase out-of-state items by telephone, Internet, mail, or in person and the seller does not collect CA sales or use tax and you use, give away, store, or consume the item in CA. So if you want, you may pay the use tax for your family in CA and let your family claim it on their return. Deductions for the state tax is available if they prepare their return on Form 1040 and itemize theirr deductions on Sch A, which is the only form they can report a state tax deduction on their return.
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