From: Steve Grammont (islander@midmaine.com)
Date: Wed Jun 09 2004 - 14:44:15 PDT
>As explained to me, the GL transaction takes place in
>Scottsdale (PHX) AZ, and therefore they need to
>collect taxes. To me, it seems like interstate
>commerce, but they are sticklers about it:
I'm no expert on tax stuff, but I do have a company that sells stuff all
over the world. The way my accountant and attorney explained it to me
is that we have to collect taxes only when the item is purchased in *and*
delivered to (or picked up by) someone residing in a state where we have
an office. Using my company as an example, our only office is in Maine
and we ship product out of Vermont through a third party. I have
employees working out of their homes in a couple of other states. The
only people I have to charge sales tax to are those who use a state of
Maine address for delivery.
For companies that have offices in different states, taxes are only
collected in those states. They are also collected at the rate of that
state. So if I have an HQ in Arizona and someone makes a purchase in
NYC, where I also have an office, the customer is charged the NYC tax
rate NOT the AZ tax rate.
This would lead me to believe that either I have been grossly informed
about tax collecting responsibility, or GL is subject to some different
requirement, or GL is full of it. I don't know which one it is, but I am
pretty sure I'm doing things right.
Steve
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