Legal Question in Business Law in Washington
Business Law - Collecting Sales Tax
Our company has a lot of potential customers in California, but to be able to sell to California we have to fill out a tax form, which only a few states require (MA, FL, CA). Even though my company is based in Seattle, do I still have to pay sales taxes to California?
Our distributor does have a warehouse in California, and they have told us that we have to collect taxes, but I am just a little confused.
1 Answer from Attorneys
Re: Business Law - Collecting Sales Tax
Yes, if you are reaching into another state to do business there (and this includes marketing efforts that don't require you to be physically present in the state) then you have to pay the taxes that state may require. The state cannot require you to pay taxes that businesses located in that state don't pay, but if the locals are paying, the state can require you to do so, too. Your distributor is probably right, but if you want to be absolutely sure, repost this question requesting a response from the California attorneys who participate.
Good luck.
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