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03-25-2005, 07:56 PM #1Web Hosting Master
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- Jul 2003
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Should taxes depend on billing address or shipping address?
I'm in Michigan. Should I tax orders who's billing address or shipping address is in Michigan?
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03-25-2005, 07:58 PM #2Web Hosting Master
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- Mar 2001
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- Michigan
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Your best bet is to actually ask the Treasury Department in Michigan:
http://www.michigan.gov/treasury/
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03-25-2005, 09:18 PM #3Web Hosting Master
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- Jul 2003
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Can anyone make sense of this? I believe it's stating that out-of-state orders are subject to "use tax". I have never heard of collecting taxes for out-of-state orders:
http://www.michigan.gov/treasury/0,1...5931--,00.html
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03-25-2005, 09:38 PM #4Web Hosting Master
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- Jun 2004
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The seller does not collect the use tax. It is supposed to be the responsibility of the buyer to pay the use tax to the buyer's state of residence. In Idaho the state income tax forms include lines to report use tax that is owed to the state of Idaho. As the website states, compliance is very low. Enforcement tends to be almost non-existent. One area where use tax may be enforceable is if you buy an item from out of state without having paid that state sales tax, and you need to register the item. For example, a car or a boat. Showing a receipt for the use tax could be a requirement for your registration. While people don't usually buy cars by mail order, the situation probably does come up for states that border Oregon, which has no sales tax.