| I’m trying to figure out what kind of sales tax I have to charge on my internet business selling art from TX?

I’m trying to figure out what kind of sales tax I have to charge on my internet business selling art from TX?

Laura G asked:


If anybody has any insight or can help me find a place to start looking for the answer I would greatly appreciate it. Thank you!

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Comments

3 Responses to “I’m trying to figure out what kind of sales tax I have to charge on my internet business selling art from TX?”

  1. wartz on May 30th, 2009 7:33 am

    Charge your regular rate for sales to Texas residents, charge zero to out of state buyers.

  2. Mike O on May 31st, 2009 8:43 am

    Yes, the internet sales tax rule is that I only have to pay sales tax if the company I am buying from has a physical sales outlet in my state.

    I buy computer parts from online from TigerDirect. When in Illinois, they charged sales tax because they have a store there. Now am in Wisconsin, they do not charge it.

  3. Christopher P on June 1st, 2009 11:29 pm

    You have 2 primary considerations here.

    You must charge sales taxes on sales that are shipped or occur in a state where you have what is called nexus.

    Nexus is a legal term for a when a company operates in an area. This is very complicated to consider if you have anything other than a very simple situation. For instance the Tennessee supreme court ruled recently that Nexus would occur if you came for a convention that lasted over 2 weeks (meaning you would have to collect all sales tax on sales to Tennessee residents!) Another way you are considered to have nexus is if you have a single employee in that state.

    So your first question is do I have nexus in another state?

    The second question of which I do not have much knowledge is that state sales tax rates in Texas. In Florida every county has a different tax rate so you have to collect a different amount for sales to different counties. If Texas has one rate for the entire state you can ignore this.