A Sales Tax is a consumption tax imposed by the government on the sale of goods and services. This tax is usually collected at the point of sale by the retailer.

Sales Tax Text

Sales Tax

You must obtain a seller's permit if you:

  • Are engaged in business in any state and
  • Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail

You are engaged in a business if you:

  • Have an office, sales room, warehouse, or another place of business in this state (even if the location is only temporary)
  • Have a sales representative, agent, or canvasser operating in this state
  • Receive rental payment from the lease of tangible personal proeprty in this state

Taxable Sales

  • Retail
  • Drop Shipping
  • Labor cost creating tangible personal property

Non-Taxable Sales

  • Sales to other Retailers for the purpose of resale
  • Sale in interestate or foreign commerce
  • Labor for repairing, reconditioning, or installing
  • Sales to the US Government and other entities

Use Tax

If you made purchase without tax from a business located outside the state, but you use, store or some form of consumption of the item in the state. You need to pay use tax.
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