Definitive "who do I collect sales tax from" answer?

My girlfriend, the corporate accountant, is insisting that I charge EVERYONE sales tax - she's worried that the state (Missouri) is going to come after me. I found a few things that said that I don't charge sales tax on out of state stuff, but she refuses to budge.

I already have had an out of state client on a larger order call me up screaming about it...

I am from Oregon - no state sales tax and if I was to visit your store and get charged tax - I would be outta there in a heart beat. Please check with your state tax authority.

Right... I just need to find something to show her... Some CPA who is used to doing local businesses' taxes told her that I need to collect sales tax on everything. I'm guessing CPA may not have considered the fact that it's mail order...

Uh ... tell her to ######## out?

The final authority is your local state sales tax collection office. But I know here in Wyoming, I only have to collect sales tax from Wyoming residents. And I've web-ordered from all over the place and the only out-of-state place that charges me sales tax is QVC, who apparently collects appropriate tax for all the states.

QVC may have physical plant in all the states - I think that is the defining characteristic. I'm thinking that the CPA may have whipped out use tax on her at the same time...

Has -anyone- outside of a Fortune 500 company, ever paid use tax?

consult a tax attorney, but your first step is to contact your state comptrollers office,

and for the record, a business only has to collect sales tax for a state that they have a physical address in,

for instance, I am in PA and have to collect Sales Tax here,
We are set to use a proxy in Deleware ( acts as our address there ) we are then required to collect and submit sales tax on any taxable item we sell in Deleware.....

But once again your state comptroller is the ultimate authority

Contact them and get things from them in wrting

I think I read if you do sales of 1.5 million a year you must collect sales tax for all states that collect sales taxes. When I asked my state's people they said I only have to collect taxes for orders shipping to my state. Call/Email the people who collect sales taxes for Missouri and they will tell you.

Went looking for proof online but couldn't find any. I have collected taxes in a couple of states and am not aware of the states creating accounts for out of state companies to pay sales tax.... could be wrong there to.

I think I read if you do sales of 1.5 million a year you must collect sales tax for all states that collect sales taxes.

Please do some research before spreading half-baked rumors PLEASE!!!!!

http://dor.mo.gov/tax/business/faq/exempt.htm#q4

Here are the answers your looking for,

I found this by looking up missouri sales tax laws

What is the sales taxability of the Internet?

Fees paid for Internet access is not taxable. Sales over the Internet are subject to sales tax, if the sales transaction's shipping and delivery point is within the state of Missouri.

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What are export sales and are they subject to Missouri sales tax?

Export sales are sales made to customers located outside the state of Missouri. They are not subject to Missouri sales tax if the title to the property passes at the customers' location. If the goods are picked up in Missouri, sales tax applies.

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Are freight/shipping/delivery charges taxable?

They are exempt if the charges for the transaction are separately stated and not intended by the parties to be included as a part of the sale, and are not mandatory.

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Found that myself - I have a funny feeling I'm going to have to go have a chat with her CPA, and find out what is going on - I showed it to her, and she says that it applies only to Missouri, and that the CPA called the DOR, and all this other stuff... It's not worth losing a relationship over, but I'll be damned if I'm going to trash this thing either... I just SO cannot afford to waste all the time driving around right now...

Whoever wrote that FAQ doesn't know grammar either, or maybe they did that on purpose. Should be "shipping and delivery points are" but hey, why not be confusing...

Ask her who you should be turning in the tax to if you collect it from customers in other states... in light of the explicit "export sales" section.

Or maybe don't, if you value the relationship... :)

Do what I do with my girlfriend - say, "Yes, Dear", then do whatever you want to.

Bogie,

That is from the tax authority in your state,
please note that it states quite clearly that you ONLY collect sales tax on items purchased and delivered in your state.

If you cant believe the folks that collect the taxes, well I dont know who else you should talk to,

Kim:

Please do some research before spreading half-baked rumors PLEASE!!!!!

Thank you Kim, I did do research, that is were I found that information (Wrong or not).

Here is more information that I have found with references:

In 1987 North Dakota amended the statutory definition of the term "retailer" to include "every person who engages in regular or systematic solicitation of a consumer market in th[e] state." § 57-40.2-01(6). State regulations in turn define"regular or systematic solicitation" to mean three or more advertisements within a 12 month period. N. D. Admin. Code § 81-04.1-01-03.1 (1988). Thus, since 1987, mail order companies that engage in such solicitation have been subject to the tax even if they maintain no property or personnel in North Dakota.
http://supct.law.cornell.edu/supct/html/91-0194.ZO.html

WHAT IF MY BUSINESS IS LOCATED OUT-OF-STATE AND I INTEND TO MAKE SALES INTO CONNECTICUT THROUGH THE MAIL OR BY COMMON CARRIER?
You may register to collect Connecticut use tax on your sales in this state. See SN 92(19), Effect of Quill Corp. v. North Dakota on the Collection of Use Tax by Retailers Who Engage in Business in Connecticut Only by Selling Items Through Mail Order Catalogs with Delivery by Common Carrier, for further information concerning sales by mail order companies. If you wish to register, complete Form REG-7,* Application for Authority To Collect Connecticut Use Tax*. However, if you come into Connecticut to conduct business or you have a business location in this state, you must obtain a Connecticut Sales and Use Tax Permit.
http://www.ct.gov/drs/cwp/view.asp?a=1510&q=266760

17.
***Why does a catalog company or an online seller located in another state charge Tennessee sales or use tax? ***
If an out-of-state business, such as a catalog company, has a physical presence, or nexus, in Tennessee (a business, warehouse, sales representative or agency relationship), then that business is required to register to collect sales or use tax on merchandise delivered to a Tennessee customer. If the out-of-state business does not have nexus in Tennessee, the business is not required to collect Tennessee taxes.
Many Tennessee businesses and consumers are unaware that use tax is owed on items they have imported into this state without paying sales tax to the seller. The use tax has been in effect since 1947 and is the counterpart to the sales tax. When someone buys merchandise online or through a catalog and the seller of the merchandise does not collect sales tax, the consumer who bought the item has a legal obligation to file and pay use tax on the merchandise. The use tax is levied at the same rate as the sales tax.
Some businesses located in other states voluntarily register to collect Tennessee sales or use tax to eliminate the customers obligation to file a consumer use tax return. Consumer use tax returns are available on the department's Web site,

http://tn.gov/revenue/faqs/salesandusefaq.htm#su15

None of those support your initial statement of a dollar amount in sales to collect sales taxes.

Kim:

None of those support your initial statement of a dollar amount in sales to collect sales taxes.

You are correct, but because I didn't save a link to the article doens't mean I didn't read an article that said that. This was a few months ago and I am not close enough to the 1.5 million to have needed to look into it further.

Well, let's stick to the facts for the moment. None of us are tax attorneys or accountants.

Well, I've spent the past six hours going back and forth with her, and my brain's 'bout 'sploded...