# Charging sales tax in WI???...



## Ezra4ever (May 11, 2011)

I reside in WI with a 5.5% sales tax

Ok, I searched this thread and read a lot on charging sales tax and from what I understand, I ONLY charge sales tax to my state residents and it was clear cut, plain and simple.

I texted an accounting friend just to confirm if anything changed. She informed me that if I sell online, I don't need to charge sales tax, but can if I want to...And if I sell in person, I do charge sales tax.

Now I am just a little bit more confused, lol.

Any help?


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## splathead (Dec 4, 2005)

If an item is shipped within WI, sales tax applies. If an item is shipped outside WI, no sales tax is applied.

You never have the 'option' to collect tax or not. Either you have to, or you don't.


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## Ezra4ever (May 11, 2011)

splathead said:


> If an item is shipped within WI, sales tax applies. If an item is shipped outside WI, no sales tax is applied.
> 
> You never have the 'option' to collect tax or not. Either you have to, or you don't.


 
Yes, that's what I understood and plan to do....She just threw me off when she replied back.


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## missswissinc (Feb 21, 2012)

Yes for us in NY I'm required to collect the Local sales tax (County&MTA tax) on any item less then $50 prior to embelishment and both local and state on anything over $50 if the item is for a NY state resident. The only time you don't collect sales tax is if the person your working with is tax exempt like churches, non for profit organization etc in your state. I have heard outside of state you don't have to unless that state requires it.


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## splathead (Dec 4, 2005)

missswissinc said:


> I have heard outside of state you don't have to unless that state requires it.


No other state can require it so there are no worries, for now. The U.S. Constitution, under the Commerce Clause, prohibits one state from charging tax to someone in another state.

That may change as there is major pressure from national retailers to change the law and require all onlines sales to be taxed. If you're a Target or a Best Buy with a presence in every state, you would naturally want the law changed to level out the playing field. We'll have to wait and see what Congress does.


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## RaptorRay (Oct 6, 2009)

In WI you have to collect sales tax based on the delivery or ship to address, not your location. Lots of paper work because you have to get the zip+four zip code to figure out what tax rate to use.

Sent from my ASUS Transformer Pad TF300T using T-Shirt Forums


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## Ezra4ever (May 11, 2011)

RaptorRay said:


> In WI you have to collect sales tax based on the delivery or ship to address, not your location. Lots of paper work because you have to get the zip+four zip code to figure out what tax rate to use.
> 
> Sent from my ASUS Transformer Pad TF300T using T-Shirt Forums


Are you referring to each county and county taxes?

I read somewhere that different counties charge different tax rates.


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## Agoodwife (Sep 16, 2012)

I had some sales tax questions, and I went straight to the source and just called my state revenue office. I told them what I was doing online and what I plan to do offline, and for my state they just need me to do our fictitious title, and that's it, because where I'm at casual wear is a non-taxable item. A few other questions I had they forwarded over to a separate office, who told me the same thing. Sitting on hold is a pain in the butt, but I figured that would be the best way to get the answer I needed.


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## RaptorRay (Oct 6, 2009)

Ezra4ever said:


> Are you referring to each county and county taxes?
> 
> I read somewhere that different counties charge different tax rates.


Yes there is a state sales tax, a county sales tax, a football stadium sales tax, a baseball stadium sales tax and a resort tax. You have to look up the customer's zip + four on USPS site, then go to the state site to look up the tax jurisdiction to collect and report the correct tax. Major pain in the back side.

Ray


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## Knehmer (May 6, 2007)

Ray, I think you are incorrect. I'm in Wisconsin and it is based on the county I operate in. sales tax report only has me fill out for the state portion and MY county portion.


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## patrioticflags (Sep 2, 2012)

The Supreme Court has ruled that you only have to collect sales tax for stuff you ship within your own state.

If you opened a shipping center in another state, you would have to collect sales tax for that state also.

All the other states can not legally force you to collect sale tax for them. Most states now want everyone to volunteer how much they spent on untaxed online sales and submit sales tax on their state income income tax. I seriously doubt very many people are doing this. 



Ezra4ever said:


> I reside in WI with a 5.5% sales tax
> 
> Ok, I searched this thread and read a lot on charging sales tax and from what I understand, I ONLY charge sales tax to my state residents and it was clear cut, plain and simple.
> 
> ...


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## Ezra4ever (May 11, 2011)

Knehmer said:


> Ray, I think you are incorrect. I'm in Wisconsin and it is based on the county I operate in. sales tax report only has me fill out for the state portion and MY county portion.


So in our state, I will have to keep track of each customers zipcode? Or do I just charge the state tax of 5.5%?

From what Ray said. Yes, that sounds like a lot of work and a pain.


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## Knehmer (May 6, 2007)

You should check with your accountant...but no, I've never had to keep track of a zip code. It's where I am located...I'm in Columbia County so I'm at 5.5%. No stadium tax, etc. It's where I am. In fact, just think about when YOU go shopping in Wisconsin...not every reseller asks for your zip code..the ones that do are doing it for marketing purposes, not tax purposes.


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## patrioticflags (Sep 2, 2012)

You just use the rate for where you are located at yourself.


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## RaptorRay (Oct 6, 2009)

You should look at the tax laws. There was a big change in Oct 2009. You have to collect sales tax on the ship to address not the address you are located. If your customer comes to your site and pays for the product then, yes, you collect sales tax for your location. If you send a product to your customer's site then you have to collect sales tax based on your customer's location.

Quote below from the "Wisconsin Sales and Use Tax Information" publication 201, page 19

"1. If a purchaser receives the product at a seller’s
business location, the sale takes place at that
business location. If 1. does not apply, go to 2. 

2. If 1. does not apply, the sale takes place at the
location where the purchaser, or the purchaser’s
designated donee receives the product. This includes
the location indicated by instructions
known to the seller for delivery to the purchaser
or the purchaser’s designated donee. 
If 2. does not apply, go to 3. 

3. If 1. and 2. do not apply, the sale takes place at
the purchaser’s address as indicated by the seller’s
business records, if the records are
maintained in the ordinary course of the seller’s
business and if using that address to establish
the location of the sale is not in bad faith. If 3.
does not apply, go to 4."

Here is a link to that document.

Please consult your accountant for more information and refer him or her to the above document. You could be liable for uncollected taxes and fines.

Ray


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## Knehmer (May 6, 2007)

Gotcha, Ray...she never indicated she was shipping her products...neither do I.


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## Ezra4ever (May 11, 2011)

RaptorRay said:


> You should look at the tax laws. There was a big change in Oct 2009. You have to collect sales tax on the ship to address not the address you are located. If your customer comes to your site and pays for the product then, yes, you collect sales tax for your location. If you send a product to your customer's site then you have to collect sales tax based on your customer's location.
> 
> Quote below from the "Wisconsin Sales and Use Tax Information" publication 201, page 19
> 
> ...


Thanks Ray!

This helped a lot. I plan to do only online sales for now, so all I need to do is charge the tax in my county.


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