Taxes on out of state purchases.

[kim1181]

What is the name of your state? South Carolina

My volunteer fire department recently purchased some expensive equipment from North Carolina, when I was paying the bill I noticed that we were charged sales tax. I don't remember ever being charged sales tax on out of state purchases. Is this ligit or is the company making an extra $148.00 on our purchase? Also I always thought that a non-profit organization was tax exempt, would our fire department not fall into that category? Thank you.

[abezon]

The company should not have charged you sales tax unless they have an office or warehouse in CA. If they do, you should be able to show them your tax-exempt form & get a refund of the $148. I assume you have a tax status that allows you to be tax exempt on purchases you make for your group's own use, rather than a reseller's tax exempt certificate.

[kim1181]

Abezon I live in South Carolina. Our fire dept. does not have tax exempt status. I called the company in North Carolina and they said they do not have an office or warehouse in South Carolina, so when I paid the invoice I explained this to them and deducted the sales tax. They wrote back and said they are licensed in South Carolina therefore we owe them the tax. I have spent the morning trying to find out if they are indeed licensed in South Carolina but so far have been unable to find anything. I checked with the BBB and they are listed in North Carolina but not South Carolina. Where do I go from here? Any suggestions would be greatly appreciated.
Kim

[anteater]

An out-of-state company does not necessarily have to have a presence in another state to collect sales tax on sales into that state. If they have a presence in another state, they are generally required to collect sales tax. But, even if not required, they may do so voluntarily. Particularly, if they have a large volume of sales into that state.

In addition to having a physical presence in the state, South Carolina says that an out-of-state vendor has to have a license if they have a salesperson or agent in South Carolina, or even if they deliver goods on their own trucks and advertise regularly in South Carolina media.

South Carolina has a use tax in addition to the sales tax. If you don't have a sales tax exemption and make purchases from out-of-state vendors that don't charge South Carolina sales tax, then you likely should be remitting use tax to South Carolina.

Check the South Carolina Department of Revenue.