Most equipment manufacturers in manufacturing-friendly states like Michigan take it for granted that equipment used in manufacturing is exempt from sales tax in other states. Much to their unhappy surprise, it is not the case in all states!
Now that physical presence in a state is no longer required to create a responsibility to collect sales tax, businesses need to watch out. The easiest way to make sure sales are exempt is to collect sales tax exemption certificates from ALL customers.
Here are a few states to watch out for:
The chart reflects the nexus standards for remote sellers. If you have employees or property in a state, you are most likely subject to sales tax collection responsibility without meeting a sales threshold.
If you are concerned you have created a sales tax liability, contact us and we can assist you with evaluating your exposure and providing you with options to limit your exposure.