Divination posted:
The answer is if you have a physical presence in that state, you are supposed to charge tax. This would mean a server, office, or anything that is physically there to sell or run the business.
For instance, if you order something from Newegg.com, you only pay tax if you are in a state where they have a warehouse or office. I think it is California, New Jersey, and a couple of states in the middle of the country. The rest should not have to pay tax.
I also think collecting taxes from other states is voluntary to the business, but each state is trying to promote it.
I believe that it is as Divination said, unless the company has a physical presence in your state, collecting state sales tax on internet purchases is voluntary for the seller.
But, your state's sales tax is not optional. Everyone is ‘supposed’ to pay the state’s sales tax on internet purchases. The seller collects it and pays it to the state or the purchaser is supposed to keep track of their purchases where tax was not collected by the seller and the purchaser is supposed to pay the tax to the state.
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