Yes, you are correct!  If your client has representatives in a state  
you have to charge sales tax for sales delivered to that state.

And, taxes for other jurisdictions within that state apply --  if the  
buyer receives the product or service within that jurisdiction.

Your client loses one of the advantages of web sales.

This really can be a can of worms.

For example, I live in the San Francisco Bay area.

The numbers go something like this:

State Sales Tax Rate:  7 %
County Sales Tax Rate 1 % (all counties)
BART Sales Tax Rate 1/2 %  (counties within the Bay Area that are  
server by (or soon to be) the Bay Area Rapid Transit system).

Yech!

Dick

On Aug 25, 2004, at 2:00 PM, Brook Davies wrote:

> I see. My client was also saying, that because they have  
> 'representatives'
>  in each state, they have to charge the sales tax. And apparently, just
>  within Texas, within the different jurisdictions there are differing  
> tax
>  rates...
>
>  Brook
>
>  At 01:55 PM 8/25/2004, you wrote:
>  >Tax in the US online is simple. Tax is only charged if the buyer is  
> in
>  >the same state as the seller. Sales tax rate is based on the  
> location of
>  >the seller. For example, I'm in Lewisville, TX, so I have to charge
>  >everyone in Texas 8.25% (or is it 8%??? - I forget) for sales tax. If
>  >the customer lives in say, California, I don't have to charge them  
> any
>  >tax at all.
>  >
>  >--Ferg
>  >
>  >���_____
>  >
>  >From: Brook Davies [mailto:[EMAIL PROTECTED]
>  >Sent: Wednesday, August 25, 2004 3:33 PM
>  >To: CF-Talk
>  >Subject: Calculating Sales Tax within the US
>  >
>  >Hello,
>  >
>  >I'm from Vancouver Canada eh, and my client is in Texas. They are
>  >selling
>  >an online service (ASP model) within��the US. Is there any resources  
> or
>  >web
>  >services that help calculate tax in the US?
>  >
>  >Brook
>  >
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