WAHM Forums

Has anyone done a fundraiser? I was wondering how we place the order as a fundraiser to avoid being charged the sales tax. Do I need to fax over the tax exempt form?


Thanks!


Chris

What you need to do is file with your state to pay your own taxes - it easiest if you keep a little free checking account to deposit all your tax money into, that way it's always just there in one place. Once you get your tax certificate, you will fax that into Scent-Sations - THEN if you have a tax exempt organization that wants to do the fundraiser, YOU keep a copy of their form for your files.


This is also a perk because you wouldn't want to pay tax on retail price for your own candle use - and votives you use as a promotional material. This also helps you out if you want to run specials - for example, buy one jar 18.95, two jars for $35 - if the customer pays for the two jar special, you charge them the tax on that. If you were having the company take care of the sales tax, you'd be charged sales tax on suggested retail prices always.


I can go over this in more detail if you like, just let me know.

Also - you would only collect sales tax for those purchasing within your own state - not from those in other states.

Sandy, why would you not charge sales tax on out of state orders. The sale is originating in your state of taxing. Just like when you web order from other companies...you get charged their state tax.

That may be my error - I have to check into that. In any purchases I've made over the internet - I've only had to pay sales tax if they were in the same state I was in - but if the sale originated in another state, I've not been charged - let me doublecheck - I've done only one sale myself out of state with MB, since most of my orders are here done face to face.

I guess the answer to that is as specific as state rules, so please refer to what your state says -


this is Florida, where I am located so this is most likely why I wasn't charged for internet sales - and what I was basing my information on because I had assumed it worked this way for all - why would someone in Delaware, for example, pay my 7.5% tax (including county tax) when they can get the same itemwith no sales tax(I need to look up the information on the selling side for my state):


Use Tax


Unless specifically exempt, merchandise purchased out of state is subject to tax when brought into Florida within 6 months of the purchase date. This "use tax," as it is commonly called, is also assessed at the rate of 6 percent. Examples of such taxable purchases include purchases made by mail order or the Internet, furniture delivered from dealers located in another state, and computer equipment delivered by common carrier. Items purchased and used in another state for 6 months or longer are not subject to use tax when the items are later brought into Florida.

Here's a link for Louisiana as well, just found it in my searches (most search results were legal-eze and I tried to find a couple that were in plain english smileys/smiley36.gif


http://labudget.lsu.edu/internettax.htm


so it appears that manycompanies MAY be set up to collect sales tax from other states (possibly if they have some sort of headquarters in that particular state), however it sure looks like they are all relying on us to come forth and file taxes owed to OUR state for "bringing items into the state"


Anyone else have information on this? Or is it really the basic thing of ifbuyer and the seller are in the same state,seller collects the tax and remits. Ifbuyer and the seller are in different states, the buyer is supposed to report and pay the taxes tothe buyer'sstate department of revenue.