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Subject Author Date
Internet sales and local sales tax paul 12-05-2006
Posted by deddleman on December 7, 2006, 8:11 am
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 paul@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?

The rule is that you collect all sales taxes for the point
of delivery (if you have nexus in that state, which you do),
including the local. Some jurisdictions have you remit
everything to the state and some (for instance, a few cities
in Alabama) make you report and remit separately to them.
You'll need to check with the taxing authorities about that.

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Posted by Harlan Lunsford on December 8, 2006, 2:26 am
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 deddleman@sfidwater.org wrote:
> paul@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?

> The rule is that you collect all sales taxes for the point
> of delivery (if you have nexus in that state, which you do),
> including the local. Some jurisdictions have you remit
> everything to the state and some (for instance, a few cities
> in Alabama) make you report and remit separately to them.
> You'll need to check with the taxing authorities about that.

Interesting to see your comment about Alabama jurisdictions.
In fact not only the state Dept of Revenue and certain
cities to which you alluded are on the take, but a third
outfit, Alatax, collects for many cities and counties.
It's a real hodgepodge, believe me.

Now as for what tax to collect, only the state sales tax is
collected for out of state sales IF one has nexus in that
state. For example yesterday I ordered Hickory Farms
assortment for my daughter in Florida. Their sales tax chart
lists the various states in which they must collect, GA 4%,
AL 4 and Florida 6%. Even though I'm not in FL, that's
the rate I'll pay.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< 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 Katie on December 7, 2006, 8:30 am
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paul@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?

Oklahoma uses a destination rule for local taxes, as
required by the Streamlined Sales Tax Agreement, of which it
is a member.

You collect the local tax for the Oklahoma local
jurisdiction to which the property is shipped. See the
Oklahoma Sales Tax Information Packet, available at
http://www.tax.ok.gov/oktax/btforms/PktB.pdf.

Katie in San Diego

<< ======================================================= >>
<< 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 Katie on December 8, 2006, 2:07 am
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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.

In California, the seller is required to collect the
district tax only on sales delivered in or shipped to an
address in a district where the seller is "engaged in
business," which includes making regular deliveries into the
district in its own vehicles. For sales delivered or
shipped to a district where the seller is not engaged in
business, the seller is required to collect only the
statewide rate of 7.25%. However, the seller may, as a
courtesy to its customers, collect and pay over the district
tax voluntarily. Otherwise, the purchaser is liable for the
district use tax.

Katie in San Diego
<< ======================================================= >>
<< 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 deddleman on December 12, 2006, 1:56 am
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Harlan Lunsford wrote:
> deddleman@sfidwater.org wrote:
>> paul@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?

>> The rule is that you collect all sales taxes for the point
>> of delivery (if you have nexus in that state, which you do),
>> including the local. Some jurisdictions have you remit
>> everything to the state and some (for instance, a few cities
>> in Alabama) make you report and remit separately to them.
>> You'll need to check with the taxing authorities about that.

> Interesting to see your comment about Alabama jurisdictions.
> In fact not only the state Dept of Revenue and certain
> cities to which you alluded are on the take, but a third
> outfit, Alatax, collects for many cities and counties.
> It's a real hodgepodge, believe me.
>
> Now as for what tax to collect, only the state sales tax is
> collected for out of state sales IF one has nexus in that
> state. For example yesterday I ordered Hickory Farms
> assortment for my daughter in Florida. Their sales tax chart
> lists the various states in which they must collect, GA 4%,
> AL 4 and Florida 6%. Even though I'm not in FL, that's
> the rate I'll pay.

Very much a hodgepodge, not just Alabama. The last place I
worked we were registered resellers in all 46 states & DC.
The reason I mentioned Alabama is that Huntsville told me we
had to collect city sales tax. We had no office there. I had
similar experiences with auditors from other states, notably
Ohio and Texas, where the state collects for localities. No
offices there either. Disagreeing with them became too
expensive.

David in San Diego

<< ======================================================= >>
<< 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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