The Decision Tree

I get lots of questions about what seller's responsibilities are when they ship to another state.

Question 1: What state does the delivery occur? This, of course, determines the set of state rules you follow.

Question 2: Do you have nexus in that state? If you don't, quit now and run away! But are you SURE you don't have nexus. If you're not sure, continue.

Question 3: Is what you sell generally taxable? If not, quit now and, you know, run away!

Question 4: Is what you sell generally taxable, but not taxed in this situation because of the organization buying it, or how it will be used? If so, get an exemption certificate. Even if you don't have nexus in the state, it's not a bad idea to get certificates anyway, just in case you do have nexus and don't realize it.

Sales Tax Guy
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