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Life Business and Money - Collecting Sales Tax

  • Broadcast in Business
Steven Kay

Steven Kay


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Are You Supposed To Collect Sales Tax?
So many start-up businesses fail to ask if they should be charging sales tax and more often than not it will eventually catch up to you if you’re not careful, so you should do your research before opening up shop.  Who do you check with first?  The Texas State Comptroller (http://www.window.state.tx.us/contact.html) is the governing force behind the enforcement and collection of all sales tax items that are sold in the State of Texas.  However, due to the numerous laws that change on an annual basis with more items and services being added, you must be aware that it’s important to be in tune with everything dealing with your business.
One of the most important items if you are to collect sales tax is to find out the amount.  The maximum percentage rate is 8.25% but that is dependent upon the actual location of the sale.  If you have a traditional brick and mortar location, then you only need to research that specific physical address and you’re good to go.  However if you sell in a variety of locations, then tax rates may vary by each of those locales.  Yes it can be confusing, however just imagine some of these items which are taxable and nontaxable: