Sales Taxes

Learn more about keeping your business compliant with sales tax requirements.

Sales and Use Tax Requirements by State

Of all the tax obligations you face as a small business owner, few have as much of an impact on the day-to-day operation of your business as the sales tax does

Even if you do business in Alaska, Delaware, Montana, New Hampshire or Oregon, which are the only states that do not have a general state-wide sales tax, you may have to collect and pay over local sales taxes or sales taxes imposed on particular businesses.

The term "sales taxes" in a generic sense, refers to the taxes that states impose on retail sales. However, states differ in whether the tax is imposed upon the seller, the purchaser or on the transaction itself. Knowing the taxing rules in your state is important because the type of sale tax regime determines:

  • Who can be liable for the tax
  • Who can sue on the tax
  • Who can make a claim for refund of the tax

There are the three general types of sales taxes:

  • Sender (vendor) privilege taxes
  • Consumer excise (sales) taxes
  • Retail transaction taxes

"Use tax" is defined as a sales tax on retail sales that are consummated in other states, meaning transactions occuring outside your home/incorporation state.

For a detailed summary about sales and use tax requirements, we have the following article: Understanding Your Sales Tax Obligations

If you are looking for sales and use tax laws specific to your state or jurisdiction, please visit the respective secretary of state site. 

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Category : Sales Taxes
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