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Can Students Skip Out on Textbook Taxes? DirectTextbook.com Explains

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Can Students Skip Out on Textbook Taxes? DirectTextbook.com Explains

PR Newswire

PORTLAND, Ore., July 31, 2018 /PRNewswire/ -- Do students have to pay sales taxes on textbooks? The short answer is "yes," but they can decide when to pay them with DirectTextbook.com's new tax estimator tool. It shows students how much tax they owe plus which stores collect sales tax at checkout, so they can choose to pay it now or wait until they file their state tax returns. The tax estimator tool is part of DirectTextbook.com's free textbook price comparison service - try it now at https://www.directtextbook.com

Here's what else students need to know about textbook taxes: 

  • Students must pay sales taxes on textbooks. If an online retailer doesn't collect the tax at checkout, students must pay a "use tax" on their state tax returns
  • Sales taxes on textbooks can add up to $100 or more per year. Some state tax rates are over 10%, which amounts to $125 per year for average textbook purchases
  • DirectTextbook.com's new tax estimator tool makes it easy for students to see how much tax they'll pay, and when. Students can use the free tool to identify which stores collect tax at checkout, so they can decide whether to pay it now or wait to pay it at a more convenient time on their state tax returns
  • There are some loopholes. Students who live in and buy from retailers in states that do not collect sales taxes are exempt (though they may still need to pay local taxes). Alaska, Delaware, Montana, Oregon and New Hampshire do not collect sales tax. In addition, some states exempt textbooks from sales taxes under certain circumstances, such as when buying textbooks from campus bookstores
  • South Dakota v. Wayfair likely won't have an effect this year. The recent Supreme Court decision allows states to require online retailers to collect sales taxes from out-of-state buyers, but it's not certain if or when states will enact such laws. In the meantime, students are still responsible for paying sales taxes on textbooks – whether the tax is collected at checkout or not

The new tax estimator tool is part of DirectTextbook.com's commitment to helping students save an average of 50 percent on textbooks by finding the best prices for new and used textbooks, textbook rentals and e-textbooks.

Since 2002, Direct Textbook has helped more than 35 million students save more than $200,000,000 on textbooks. 

Media Contact: 
Brian Morris
Communications Coordinator
brian@directtextbook.com

 

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SOURCE Direct Textbook Inc.

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