A mailorder business ships to multiple states, how is it determined inwhat state you pay sales tax?

Answer 1

Sales taxes are filed and paid in the states that you have a real physical presence in. So, your home state.

If you sell items within your state, you are to collect and remit sales taxes.

Unless your state and the state you sell to have a reciprocal agreement, the customer will be responsible for their own sales taxes.

As the economy tanks, states will start to follow up on this more and more. In Michigan they added hundreds of auditors to the sales tax division to make sure the citizens are claiming all their sales taxes on internet sales.

So to sum up: within your state, your responsibility to charge the customer and remit to state, outside of your state it is the customer's responsibility.

Google: your state sales use tax regulations

you should end up at a sales tax page for instructions for your own state.

Good luck in your business

Answer 2

Bostonian is correct. I would also add that if the company actively solicits sales in a state by sending sales reps, or sending in third parties to service any warranty claims.

There is a Supreme Court Case that explains this. It is Quill vs. North Dakota. See the link.

http://www.law.umkc.edu/faculty/projects/ftrials/conlaw/quill.html

Answer 3

The sales tax is to be paid in the state where it is being shipped to. However, in some states, it is the responsibility of the consumer to pay the tax on their own (I know, almost impossible to enforce). Each state handles it differently.

Answer 4

Any state where you have a nexus, i.e. a physical presence of any type such as a store, warehouse, offices, etc.

Answer 5

You would only pay if you live in the same state that it's being shipped from.

Answer 6

States where they actually have a store.