# Advice on Collecting Sales Tax



## IrieInnovator (Apr 3, 2007)

Any advice or suggestions on a good way to collect sales tax on big orders with multiple buyers of the same design. Trying to streamline the process for the person that is collecting the money for the order.


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## HumbleShirts (Sep 7, 2007)

IrieInnovator said:


> Any advice or suggestions on a good way to collect sales tax on big orders with multiple buyers of the same design. Trying to streamline the process for the person that is collecting the money for the order.


I know this sounds kind of lame but with only the info you've provided, I can only say that you multiply the total sale by the tax rate for your area and there you have it.

Example:

Tax Rate 8.25%

Sales Total: $379.00 ($3.79 per shirt x 100 shirts)
Sales Tax: $379.00 x .0825 = $31.27
Total To Collect: $410.27

I hope this helps. I'm not sure if this is the info you're looking for or not.


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## binki (Jul 16, 2006)

Give them a total price per each with tax. End of story. 

We have lot's of customers that sell for less than they pay because they don't add tax even after we give them to total. go figure


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## 4C Print Shop (Sep 8, 2010)

IrieInnovator said:


> Any advice or suggestions on a good way to collect sales tax on big orders with multiple buyers of the same design. Trying to streamline the process for the person that is collecting the money for the order.



Sales tax should only be charge to customers in your state only, out of state are usually considered exempt sales


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## GN (Aug 1, 2011)

mrdean78 said:


> Sales tax should only be charge to customers in your state only, out of state are usually considered exempt sales


For now...


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## IrieInnovator (Apr 3, 2007)

Aware that we have to charge taxes. Here is an example of what I was trying to streamline with charging taxes: We print the memorial photo t's for a deceased person's family. Orders normally range from 10 to 40 shirts, with one person in the family collecting all the money and shirt sizes before placing the order with us. Price for shirts go up pass size 2x. So we tell them the price per shirt and let them know that we collect tax. Being that there is one person collecting from multiple persons, we were just trying to see what would be a good way to make it a little easier for the person collecting the funds since the taxes are not always an even amount and it varies depending on size of shirt. Wanted to get a feel on how other establishments were handling orders like this. Think Binki explained it all with his one-liner.


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## HumbleShirts (Sep 7, 2007)

If you charge the same price for 10 and 40, just take the overall total of the sale plus the tax and divide that by the number of shirts regardless of size and you'll have a price per shirt. My experience is you just bum people out telling them their 2XL or 3XL shirt will be more than the others, especially in a situation like you describe. This way all the prices are the same and cost averaged.


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## dmfelder (Oct 25, 2008)

We get this question a lot from our Garment Deli clients. My advice to all of you...consult a tax attorney/accountant. It seems that the laws are in constant flux. It will be very interesting to see how the California vs. Amazon issue pans out.


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## missswissinc (Feb 21, 2012)

either way with us we have to collect sales tax for the county on all shirt styles under $50 and both state and local for over $50. The best thing is like the person said you charge them the sales tax on the overall amount so lets say a bill comes to $400 total I charge them 4.125 % on the overall cost so that would come to $16.50 so the overall bill will be $416.50. If your still confussed seek a CPA advice and they will help you out with collecting the proper taxes for your business.


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## SunEmbroidery (Oct 18, 2007)

I wouldn't worry too much about making it easier for the person collecting the money. What if you try to adjust your pricies to accomodate that then your tax rate changes? A lot of times one person will chip in extra to pay taxes or the person collecting the money raises the cost slighty so the tax is covered.


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## dmfelder (Oct 25, 2008)

Hey there. I know this is an old post, but I wanted to update my original post. Our t-shirt fulfillment services clients have the option of operating Garment Deli, (shopping cart/website solution), so we had to create an integrated tax system to enable clients to set tax by state. Until recently, we didn't really know that taxes can be applied completely differently in different states. As it turns out, our NY clients have to charge tax on shipping costs (not just the product).

I did some research and discovered there are a fair number of states that require you to charge tax on shipping (even though it's a service, not a product). That is NOT the case in Illinois, nor is it the case in many other states. 

So, in looking back at my old post from a few months ago...DEFINITELY consult a tax accountant/attorney!

Cheers!


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## Louie2010 (Feb 26, 2010)

mrdean78 said:


> Sales tax should only be charge to customers in your state only, out of state are usually considered exempt sales


I am sure you know this, but to clarify for those that may not. This is true providing you are shipping it out of state from your where your business is located. In the past I have had customers buy from me at a retail location and didn't want to pay tax because they were from out of state. LOL, sorry that doesn't work.


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