In NC unless the vendor is located in NC and the consumer is located in NC, the vendor does not have to claim internet sales and collect sales tax, but the consumer does. Very strange, I know. When we file our taxes at the end of the year in NC (consumer) we have to claim any taxes not paid online for products purchased online. Strangest thing I have ever seen. We are required to keep all receipts for online purchases but most NC residents are not even aware this law exists. When they file their taxes they just assume NO to that question since it makes no sense to them when they read it. (Play dumb) And yes, I meant the zip code and city of the retailer determines the rate onsite and the zip code and city of the consumer determines whether all taxes are applied or not online only, but I guess I did not state that very clearly, did I?


>Hi Tracy,
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>The sales tax in Texas is based on the retail store location. It is my understanding that although a rate applied at a single store may be for collection of taxes on behalf of many taxing jurisdictions like state, city, county, etc, the same rate would apply to all taxable sales. The sales tax is remitted to the state controller who then distributes the proceeds back to each jusisdiction based on the location of the store. This mean that only one rate is needed even though it may consist of the sum of rates of the individual taxing authorities. Is this different in other states?
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>At some point I think the sales tax system will require simplification, and there are a number of taxing authorities itching to get there share of the internet economy. Some really simple system would be required to insure that an internet sales tax was uniformly fair across all taxing jusisdictions.
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>LelandJ.