Resources
As part of our services to you, we invite you to take advantage of the resources we make available to you. Below you will find frequently asked questions and web links to your state sales tax department of revenue. Please feel free to contact us with any questions.
Frequently Asked Questions
Does sales and use tax apply to my state?
Five states do not impose sales and use tax. They are: Alaska, Delaware, Montana, New Hampshire and Oregon.
The remaining 45 states impose sales and use tax.
How do I know if I have established Nexus?
If your company is selling out of state, your company is responsible for collecting that state's sales and use tax where the
business transaction is taking place. This practice also applies to Internet sales.
If your company has not established Nexus, the customer is responsible for paying the use tax.
How does my company determine the difference between sales tax and use tax?
Sales and use tax are two different taxes that cannot be used together. Sales tax is applied to retail transactions
done within your business's state. Use tax is collected from out of state businesses that do not
collect sales tax and have not established Nexus.
Should my company collect sales tax from the state the customer is in or from the state our business is located?
The state the business is located is where the tax should be collected.
What is the Streamlined Sales Tax Project (SSTP)?
This project was designed to simplify the sales and use tax collection by each state to a more consistent
process and compliance.
What are the requirements to use a resale certificate?
If your business collects sales and use tax, your company can use the resale certificate on purchases that are to be
resold by your business only.
Does my company need to provide a sales tax return if our sales are zero?
Yes. It is required. You will want to check with your sales and use tax consultant about filing less frequently.
Is my church exempt from sales tax?
Your church will need to pay sales tax. However, your church does not have to pay use tax for non-profit
activities by the church.
Will an out of state company doing work in my state need to register with the State Tax Commission?
Any company doing work in your state needs to register with your state’s tax commission.
Is an out of state company required to charge my state sales or use tax on items shipped into my state?
Company's that have a place of business in your state are responsible for sales tax on non-exempt sales in that state.
Are my sales to a municipality (Federal, State, County and City Government) exempt from sales taxes?
Yes.
Is my private not for profit school exempt from sales tax?
Yes, as long as the school's income does not benefit a private entity or person or persons.
Services that are taxable are those that are not used to operate the school such as items being resold to students.
Will a state auditor give my company any credit for tax overpayments during an audit?
Most likely the auditor did not issue any credits to your company. After a state audit, it is a good idea to
enlist the help of a Sales & Tax Use consulting expert to research and explore credits that can be issued to your company.
What is the benefit of hiring an outside Sales & Use Tax expert?
Finding possible refunds for your company after a tax audit takes a lot of time and resources that your company may
not be able to dedicate. Experts are up to speed on current rules and regulations to ensure an accurate refund
through their thorough search of your company audit records.
Does hiring an expert lessen the refund my company may receive?
Because of the expert level of an outside sales and use tax professional your company should receive a bigger
refund than if your company were to perform its own audit. Talk with a consultant to negotiate fees.