Quote:
Originally Posted by Randy Chase
This is not new and really not related to online or not transactions. The same rules apply for orders placed by phone or mail.
Businesses have always had to deal with use tax. A business must pay Calif the sales tax on purchases not for resale. Regardless of where you bought it.
|
Out-of-state businesses (remote sellers)
that sell to Colorado residents solely
through the Internet, telephone, or
mail-order catalogs and that have no
physical presence in Colorado or otherwise
do business in this state are protected
by National Bellas Hess, Inc. v. Department of Revenue Illinois, 386 U.S.
753 (reaffirmed by the recent Quill decision).
These United States Supreme Court
rulings protect mail-order catalog sales
businesses from having to collect state
sales taxes from purchasers in states
where the remote-seller has no physical
presence itself or through an agent.
Taken from:
http://www.revenue.state.co.us/fyi/pdf/sales05.pdf