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Is intertstate commerce considered shipping by common carrier? If so, is a sale tax exempt if it is shipped from one state to another using a common carrier? The sales tax rules per state tend to not mention anything about common carriers in connection with interstate commerce. Example: located in Indiana, sell part, ship to California using FedEx.

2007-02-15 04:14:19 · 4 answers · asked by Kalyboo 2 in Business & Finance Taxes United States

4 answers

If the end user has a resale certificate, no tax. If the end user doesn't have a resale certificate then tax applies.

See section 6379.5 and 6421 of the Revenue and Taxation Code

2007-02-15 04:23:07 · answer #1 · answered by csucdartgirl 7 · 0 1

If you are in Indiana and you are shipping by common carrier to California, unless you are a California vendor, it does not seem to be subject to any obligation to collect sales tax in Indiana as the sales would be delivered out of state. The buyer would technically be subject to Cal use tax unless the goods would be inventory in their hands, which you could not care about.

2007-02-15 05:25:12 · answer #2 · answered by mattapan26 7 · 1 0

It all depends on nexus (meaning presence in the state). Look at the sales tax instructions/rules for California. They should address common carriers.

IMO, if you are using a common carrier then you do NOT need to collect sales tax in the destination state unless their rules are specifically different.

This is a STATE by STATE issue and not IRS.

2007-02-15 04:48:12 · answer #3 · answered by Molly 6 · 0 0

you'd be needing to document a area 365 days state tax go back for the state which has earnings tax. enable's say that you earned $7,000 in Texas (no state earnings tax) with the help of March 31, 2006. next, you earned $50,000 in Arizona (a state that does have earnings tax). you'll deliver ahead the entire volume of earnings you earned ($fifty seven,000) to the Arizona go back. Then, you'd be needing to document an additional desirable go back to AZ, showing how a lot should be taxable in AZ. form of a discomfort, even though it might want to be worse to pay tax on funds that should not be taxable in that state. wish that enables!

2016-11-03 12:58:40 · answer #4 · answered by ? 4 · 0 0

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