Posted on October 20, 2005 at 16:58:56:
If you are shopping on the Internet, and the company has no physical presence in your state, you probably won’t be charged any sales tax on the transaction. Ideally, the purchaser is supposed to confess and pay a “use tax” to his own state, but this is rare.
On the other hand, if you are selling on the Web, the tax picture gets complicated. Again, if there is no physical presence in the state where the package is going, the seller is not expected to collect sales taxes. But if there is the slightest connection—even an Internet Service Provider in that state—then the seller must collect and pay tax on all business in that state.
It may be advisable to consult with an expert on e-commerce and sales tax before getting started. Liabilities can add up, and the business owner—not a corporation—is liable for the taxes, and the statutes of limitations never run out. There are 7,000 sales tax jurisdictions in the U.S., 7,000 different worries.