MikeM
.44 mag
I've done our taxes with turbo tax for the past two years, both times they asked if I've made any internet purchases. I'm sure it would open a pop up or more questions if it were checked. But, I never make internet purchases so FUAC.
NY has a use tax and it's commonly used against businesses. They audit your credit card purchases and will make you pay use tax on your out of state purchases.
On a personal level, the line referenced above is a great "safe harbor". The amount is based on your income and is fairly small. What it does do is m make your purchases audit proof. Pay this number based on your income and during an audit they can't assess you more use tax. I've told my staff that I consider it malpractice not including it unless the client is a 90 y/o with no computer.
This also applies to out of state purchases, not just internet. NY state agents used to set up in NJ parking lots for stores like Ikea and note NY license plates of people coming out with purchases. Those people would get a scare letter along with the use tax form.
Now that all purchases are on credit cards I don't know if they are still doing this.