- President Trump’s trade agenda has increased tariffs on imported goods, raising costs.
- Businesses are importing inventory early to reduce cost impacts.
- Sales tax treatment varies by state in response to tariff increases.
- Most states have consistent rules on the taxability of tariffs, but some have conditional rulings.
- In California, if the seller is the importer and passes the tariff cost to the customer, it is taxable.
- In Illinois, tariffs are part of the selling price and subject to sales tax if the seller is the importer.
- In Texas, the taxability of tariffs depends on the taxability of the items sold.
- In Virginia, tariffs are taxable if combined with the price of goods on the invoice.
- Delaware, Montana, New Hampshire, and Oregon do not have general sales tax, so tariffs are not taxed in these states.
Source: allynintl.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
