Thread: Sales Tax
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Old 01-04-2014, 11:31 AM   #2
bobsyiruncle
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taxing question

Can't say as I am any kind of expert on your area and I am not a lawyer or even a US citizen but I do qualify as cheap. Typically sales tax applies based on where you take delivery so in some jurisdictions if you took delivery out of state you would be responsible for assessment not from the producing state but in the receiving state. In many cases,this is self reporting. In some jurisdictions but most notably in Europe you can apply for a refund of tax paid as you leave the jurisdiction.

In your case you have to pay in one state or another but depending on the rules and delivery you might be able to shift it to the one with the lower rate. This is worth looking into and avoids a fight with the yard.

Alternatively, you may have a contractual beef with the yard. The duty to collect is imposed on them by the state, so even if they made an error in not collecting generally they can go back and charge you. If on the other hand, the freedom from tax was used as any kind of inducement to get your work you probably have a beef. It does not matter that they changed people. The first person was acting legitimately on their behalf at the time and bound the company to whatever they did.
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