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Subject Author Date
Internet sales and local sales tax paul 12-05-2006
Posted by paul on December 5, 2006, 4:46 pm
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 I am investigating selling some products on the internet which
we currently sell in a brick and mortar in Norman, Oklahoma.
I am aware that I will have to charge state sales tax on
internet sales to people in Oklahoma. My question is, if
someone from, say Tulsa, Oklahoma purchase an item from me, in
addition to the state sales tax, do I also collect the Tulsa
local sales tax or Norman local sales tax, or no local at all
but simply the state tax?

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Posted by Herb Smith on December 6, 2006, 2:04 am
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 p...@tomkoinc.com wrote:

> I am investigating selling some products on the internet which
> we currently sell in a brick and mortar in Norman, Oklahoma.
> I am aware that I will have to charge state sales tax on
> internet sales to people in Oklahoma. My question is, if
> someone from, say Tulsa, Oklahoma purchase an item from me, in
> addition to the state sales tax, do I also collect the Tulsa
> local sales tax or Norman local sales tax, or no local at all
> but simply the state tax?

Sales taxes are creatures of STATE TAX law, and are probably
different in each state that has one. Nevertheless, I
believe the usual rule is that the shipping address of the
recipient is what controls the tax rate charged. I'm sure
that you can obtain a more exact answer by contacting the
agency to which you pay your "brick and mortar" taxes, and
asking them what the protocol is.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on December 6, 2006, 8:53 am
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> p...@tomkoinc.com wrote:

>> I am investigating selling some products on the internet which
>> we currently sell in a brick and mortar in Norman, Oklahoma.
>> I am aware that I will have to charge state sales tax on
>> internet sales to people in Oklahoma. My question is, if
>> someone from, say Tulsa, Oklahoma purchase an item from me, in
>> addition to the state sales tax, do I also collect the Tulsa
>> local sales tax or Norman local sales tax, or no local at all
>> but simply the state tax?

> Sales taxes are creatures of STATE TAX law, and are probably
> different in each state that has one. Nevertheless, I
> believe the usual rule is that the shipping address of the
> recipient is what controls the tax rate charged. I'm sure
> that you can obtain a more exact answer by contacting the
> agency to which you pay your "brick and mortar" taxes, and
> asking them what the protocol is.

Generally the rule with sales tax is that you only need to
charge sales tax for areas in which you have a physical
location or employees. So if all your assets and personnel
are in just one town of one state, you only need to charge
sales taxes to people who you deliver to in that state.

If the state has different taxes in different localities
(California does that, too) the same rule may well apply
- at least that's the way it was done here the last time
I checked. Outside your own municipality you'd charge the
state tax but not the local tax of the other city.

But check with your own state's taxing authority. They
should have rules on all this.

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Seth Breidbart on December 7, 2006, 8:30 am
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> Generally the rule with sales tax is that you only need to
> charge sales tax for areas in which you have a physical
> location or employees. So if all your assets and personnel
> are in just one town of one state, you only need to charge
> sales taxes to people who you deliver to in that state.
>
> If the state has different taxes in different localities
> (California does that, too) the same rule may well apply
> - at least that's the way it was done here the last time
> I checked. Outside your own municipality you'd charge the
> state tax but not the local tax of the other city.

New York is different; a seller in New York City collects
sales tax for each locality in New York State that he ships
to.

Seth

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Victor Roberts on December 8, 2006, 2:26 am
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Sethb@panix.com (Seth Breidbart) wrote:

>> Generally the rule with sales tax is that you only need to
>> charge sales tax for areas in which you have a physical
>> location or employees. So if all your assets and personnel
>> are in just one town of one state, you only need to charge
>> sales taxes to people who you deliver to in that state.
>>
>> If the state has different taxes in different localities
>> (California does that, too) the same rule may well apply
>> - at least that's the way it was done here the last time
>> I checked. Outside your own municipality you'd charge the
>> state tax but not the local tax of the other city.

> New York is different; a seller in New York City collects
> sales tax for each locality in New York State that he ships
> to.

As does a NY seller who is not in NYC.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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