Physical presence is required for sales tax but the states have really pushed
the envelope in asserting what physical presence is. In some cases the US
Supreme Court has even ruled on these activities.

One common example would be the use of independent contractors. They are not
your employees and may not even represent just you or your products but if
they are soliciting for you then they are creating nexus for you. The Supreme
Court ruled on this in 1960 in the Scripto Case and again in 1987 with the
Tyler Pipe Case.

Having employees visit a client could be a nexus creating activity, attending
a trade show could be a nexus creating activity, using a drop shipper could
be a nexus creating activity. The list goes on and on and is different from
state to state.

While nexus may sound confusing, it is less so the more you work with it. If
anyone has a specific question I would be more than happy to share how a
specific state may or may not look at the situation.

Hi goodmorrow,

In most of the answers to the sales tax questions the line, "If your business
has a physical presence in a state, such as a store, office or warehouse" is
being overused which can lead to false impressions.

Physical presence is required for sales tax, but it includes so much more
than the real property this statement list. For example if you are present in
a state that is a physical presence. I do not know of any states that would
not assert this is a nexus creating activity.

Sales tax is based on your ship to address so any sales you are selling in NY
would be subject to sales tax, in addition to your flea market sales.

Thank you for your help. I have a better understanding now. Thank you to everyone who replied to my question.

Hi goodmorrow, I believe you are referring to our Online Business tax section, which states, 'If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes. In legal terms, this physical presence is known as a 'nexus.' Each state defines nexus differently, but all agree that if you have store or office of some sort, a nexus exists. If you are uncertain, whether or not your business qualifies as a physical presence, contact your state's revenue agency.' In addition to business taxes required by the federal government, you may have to file state and local taxes, depending on the laws in your area. If you have specific tax questions, please pose them in the Loans, Grants, and Taxes forum where it will be more visible to people with experience in this area. These resources may also be helpful: http://www.business.gov/finance/taxes/ http://www.irs.gov/businesses/small/article/0,,id=98966,00.html

Try your Secretary of States website - they should be able to answer your question. My suggest would be - to collect it. Why not go to a lcoal fair and ask the people there what they do. Ask more than one.

You should contact your state tax board that deals with sales tax. If you are doing business and selling retail merchandise, it's my understanding that you have to file and pay sales tax on it.