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  1. #1
    OPM and Moderator Chuck Hamrick's Avatar
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    Tax Nexus for shipping out of state?
    Got a question from a merchant that I didn't know the answer for so thought I would ask here. In his state there is no sales tax for clothing sales. If a customer purchases in store and has the purchase shipped out of state say to New York, is the merchant required to pay NY the sales tax?

  2. #2
    Beachy Bill's Avatar
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    No.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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    If you are too busy to laugh you are too busy.

  3. #3
    OPM and Moderator Chuck Hamrick's Avatar
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    Any thing to document that as I can't just say that Bill said No as an answer.

  4. #4
    Beachy Bill's Avatar
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    If you look at any of the states (45 of 50) with a sales tax they all have a "Sales and Use Tax" statute on which the in-state sales tax collections are based. The requirement for reporting and paying the "use" tax on out-of-state purchases is the responsibility of the purchaser/resident. The fact that the vast majority of people do NOT do that is what prompted the original tax nexus (Amazon Tax) in NY.

    That premise has been mentioned in many of the nexus discussions for the last three years - here and elsewhere. Contact Mellie (who used to be an active member here) for additional insight - because I am not a tax attorney, nor did I sleep at a Holiday Inn Express last night. But I do read a lot...

    When you reply to that merchant you should also use the "I am not a tax attorney" disclaimer. Also suggest they seek appropriate professional advice as a CYA measure.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  5. #5
    OPM/Moderator Hectic GHC's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    Any thing to document that as I can't just say that Bill said No as an answer.
    Of course you can say "Because Bill said so."
    Greg Hoffman
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