Some states may require you to get a temporary or occasional sales tax permit if you make occasional or temporary sales in the state. States can require a business to register as soon as nexus is established, so it’s important to track your nexus in the states where you make sales. Physical presence in the state (e.g., employees, inventory, real property) There are several ways for a businesses to establish nexus with a state:Įconomic activity in the state (e.g., $100,000 in sales or 200 transactions in the state during the current or previous calendar year) You’re required to hold a seller permit in states where you have nexus, which is basically a connection with a state that’s significant enough to trigger a sales tax obligation. Exact requirements vary depending on the location and nature of your business. However, many cities and boroughs in Alaska, including Ketchikan, have a local sales and use tax and require certain businesses to register for sales tax.īusinesses also typically need one or more state or local business licenses. There’s no statewide sales tax in Alaska, Delaware, New Hampshire, Montana, or Oregon. New Mexico requires businesses that make taxable sales of tangible personal property in the state to register to obtain a New Mexico Business Tax Identification Number for gross receipts tax (GRT) Hawaii has a general excise tax (GET) license Thus:Īrizona has a transaction privilege tax (TPT) license In a handful of states, tax is imposed on the business itself, which can pass it on to the customer. In most states, businesses act as intermediaries and collect sales and use tax on behalf of the state. Other terms for “sales tax permit” are retail license, sales tax license, sales and use tax permit, seller permit, seller’s permit, or vendor’s license. A sales tax permit is a document that authorizes a business to make taxable retail sales and collect sales tax from customers.
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