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10-Nov-2017 03:47

States and localities use sales tax to pay for budget items like schools, roads and public safety.

Many states allow local areas to require a sales tax, too.

(For example, coins made of precious metals are exempt from sales tax in Ohio.) If you sell any of these items, check with your state to determine if you should collect sales tax on your products.

If the items you are selling are not taxable, then you are not required to collect sales tax on those items.

Product taxability is not always “all or nothing.” For instance, in New York, only clothing priced at 0 or under is exempt from state sales tax.

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Each state’s taxing authority — usually called the State Department of Revenue — handles sales tax registration.

Remember, they use this money to pay for budget items like schools and roads.

Thus, they want to pocket the sales tax sellers have collected as soon as they can!

You can register for a sales tax permit yourself, or hire a professional to register for your state sales tax permits for you.

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When filing online, you will sometimes receive your sales tax permit number instantly, or at least within 10 business days.

Example: The monthly taxable period in Colorado is January 1-January 31st.