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    3 Replies Latest reply on Jun 15, 2011 12:27 PM by mhtechsol

    NJ Sales Tax

    mettie Newbie
      I'm an promo product distributor in New Jersey. If my client is in NJ but the order of promotional products delivers to IL, do I tax the NJ client the 7%?
        • Re: NJ Sales Tax
          Barky Dog Tracker
          Hi Mettie,

          I hate to tell you this, but yes, you probably have to charge tax on the sale. My rational behind this is that you and customer are both in NJ when the transaction takes place. As soon as the client pays for it- they bought it in New Jersey. Doesn't matter where you ship it. The state's website says "Anyone who makes retail sales in this State is doing business in New Jersey and must comply with the State's tax laws."

          Please don't take my opinion as "gospel" though. You should contact a local accountant for their advice. You may need to just pay them for an hour of their time.

          Best of luck,

            • Re: NJ Sales Tax
              mettie Newbie
              Thanks for the reply! Another wrinkle is if my client in NJ is also reselling it, do I still charge sales tax or are they exempt because they're reselling it too? I guess one of us collects the tax and one does not.
                • Re: NJ Sales Tax
                  mhtechsol Wayfarer

                  If they are reselling, they need to provide you with a Reseller Certificate which you must keep on file. They are then responsible for collecting the tax. However, you need to keep records incase the state of NJ audits you for sales tax purposes.