Issue link: http://psai.uberflip.com/i/954030
130 2018 INDUSTRY RESOURCE DIRECTORY WA MT ND MN WI SD IA NE WY ID OR NV UT CO KS OK NM AK HI AZ CA TX AR MO IL MS AL GA SC NC TN LA FL WV KY VA PA OH MI IN NY ME MD DC NJ DE CT RI MA NH VT Origin Destination No Sales Tax Sales Tax Laws Vary State to State—So Do Your Homework State tax laws may require tax to be charged on both sales and service, or they may exempt one or the other. Here's the reality: "If you've seen one state sales tax law, you've seen one state's sales tax law." Each US state makes its own rules, so the only way to fully know what's required for your business is to contact your individual state government. Unfortunately, laws can vary a lot—and even within a state—because the rates can fluctuate due to city or district tax laws. For basic information, check with your state's department of revenue. You can also get good information from the US Small Business Administration (sba.gov) or commercial internet resources such as taxjar.com. Get a Permit to Collect Sales Tax On each taxable transaction, the seller collects taxes from the buyer, maintains accurate tax records, and then files a return to pay sales taxes to the state. Depending on your level of sales, you may need to pay monthly or annually. Be sure to obtain the correct tax permit. Know the Difference Between Origin-Based and Destination-Based Taxation Some states are origin-based, and if you live in one of these you should be charging everyone the rate where your business is located. Unfortunately, this is not what the majority of states do—they require that you charge each customer the rate required at the destination. Then there's California—which is "modified" origin-based because any applicable district taxes are based on the destination of the buyer, not the seller. The PSAI office often receives calls from Members about the complexities of sales tax—one of the most confusing aspects of any business transaction. Do you need to collect sales tax on the rental of units, or on service fees (delivery, cleaning, removal)—or both? Neither? SALES TAX It is important to note that this information applies only to your home-base state. If you do business across state lines, be sure to check with the Department of Revenue in the additional state(s) for rules applying to out-of-state sellers.