clouded vision
Well-Known Member
This is absolutely not the case. If it were he would have to register to collect sales tax in each state seperately. This would only be necessary if he had a physical presence (ie. storefront, factory, etc) within each state he is registered in. Additionally he would need to charge the tax rate in the purchasers locality instead of his own at tax is charge at the rate at the point of purchase, meaning the delivery address.I briefly want to weigh in on Sam's sales tax situation. My understanding is that he is affiliated
with numerous artisans in several states which his accountant decided constituted an out of state presence.
This doesn't mean that he is pocketing the sales tax he charges out of state customers. He very well may be reporting and remitting it to California. Chances are he either does this out of ignorance of the tax law or he may have been audited and could not substantiate the out of state sales so he was assessed and now charges everyone to avoid this in the future. Sam seems like a nice guy so I would hope it is one of those 2 instead of him simply pocketing the difference.