Sales tax in Arizona

rmn

I know that in other threads people have discussed the issue of Smugmug not collecting sales tax outside of California. The argument has been made that we do not have to pay the tax for our customer's purchases. That makes sense in states where the tax burden is ultimately on the buyer. Here in Arizona the equivalent of sales tax is the "Transaction Privilege Tax." It is different from sales tax in that the burden of paying the tax is on the seller rather than the buyer. Sellers can pass the tax on to buyers, but sellers ultimately remain responsible for paying the tax. For any of you living in Arizona or another state with a similar tax code (Delaware, Illinois, New Mexico, Ohio, Texas, Washington appear to have similar sales tax laws), how do you handle payment of taxes on Smugmug purchases made by your customers? Do you just take the loss and pay tax out of profits? Mark up each item on your custom pricing list to account for the tax?

Angelo

rmn wrote:

I know that in other threads people have discussed the issue of Smugmug not collecting sales tax outside of California. The argument has been made that we do not have to pay the tax for our customer's purchases. That makes sense in states where the tax burden is ultimately on the buyer. Here in Arizona the equivalent of sales tax is the "Transaction Privilege Tax." It is different from sales tax in that the burden of paying the tax is on the seller rather than the buyer. Sellers can pass the tax on to buyers, but sellers ultimately remain responsible for paying the tax. For any of you living in Arizona or another state with a similar tax code (Delaware, Illinois, New Mexico, Ohio, Texas, Washington appear to have similar sales tax laws), how do you handle payment of taxes on Smugmug purchases made by your customers? Do you just take the loss and pay tax out of profits? Mark up each item on your custom pricing list to account for the tax?

Why are you concerned with this? You're not making any sales, SmugMug is.