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  1. #1
    Full Member Verbalkent's Avatar
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    January 18th, 2005
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    Hi all,

    I have jumped into the realm of retail sales (On the web) and I noticed that some U.S. retail stores do not include tax on thier site (one retailer for instance is located in San antonio texas, and im almost certain that ink cartridges are taxable under there law (I may be wrong, please point it out if I am)

    well, since I am very new to this whole retail business, I would like to know If I should keep charging the 6% sales tax (Im in florida btw) or should I include the tax into the overal subtotal of the products to sorta hide the fact that they are being taxed, and If i do that, are there any reprecussions that I may have to face later..

    please provide any info that I may need, with an emphasis on NEWB!! cuz thats what I am..

    thx again all..

  2. #2
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    I used to do biz in texas and now am in NM...in both states you are allowed to sell to someone outside of the state and not charge tax. If you are in Texas, you charge Texas residents tax but not out of staters buying from your site. I am sure the tax laws could vary quite widely state to state thgough. Technically, NM has a gross sales receipt tax...not a sales tax. Go figure?

  3. #3
    ABW Ambassador Jane's Avatar
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    As far as I know you only charge tax to people in the same state as the business. I'm curious though, don't they give you anything that explains this when you get your tax id number? If they expect to get paid it seems they would provide you with some information.

  4. #4
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    Best advice, talk to an accountant.... that way, their butt is on the line if they are wrong.

  5. #5
    MasterMike HardwareGeek's Avatar
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    Tax is only suppose to be charge when the item purchased will be used in the state it was purchased in.

    Example 1:
    Store is in NY
    Person in NY buys product but has the product shipped to Person in NJ. Tax isn't charged

    Example 2:
    Store is in NYC
    Person in California buys something and the product is shipped to a person in Buffalo NY. Tax is Charged at the current tax rate in Buffalo NY not NYC. Subtotal prior to shipping is whats taxed.

  6. #6
    Full Member Verbalkent's Avatar
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    January 18th, 2005
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    thx mikey, that would explain why i didnt get charged tax for my purchase from the new mexico vendor..


    sweet,

  7. #7
    Member
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    Well here in Florida, when you get your sales tax id number, they give you like a 20 page pamphlet about taxes. It reads like an IRS instruction form.

    The big things to remember about sales tax.
    - If you charge it, you must send it to the state. You will get warnings and mean letters if you don't charge it when you are supposed to, but no fines or penalties. But if you charge it and don't pay it, you get all kinds of nastiness from the state.

    - Theoretically according to the state of Florida, you are supposed to tax somebody based on the county that the item is going to be used in. So in Orange county you are at 6.5% and in Dade you may be at 8.0% but you are supposed to keep track of where it is going to be used. Okay so really nobody does that, but that is how the tax code reads.

    - Of course, then there is the tax free holidays and the rates up to $500 and the different rate after that. Gotta love Florida right?

    In reality, how people do it in the retail industry is they charge a flat rate based on the county that is their the home county. (i.e. where you are) They charge it to people residing within the state of Florida and it is based on qualifying goods (make sure your items are exempt items).
    Chris Mayr
    When amassed, even dust can become a mountain.

    There is a finite amount of intelligence but an infinite amount of stupidity in the universe

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