- Sales tax sourcing depends on whether a state is origin-based or destination-based: in origin-based states, sellers charge tax based on the seller’s location; in destination-based states, tax is based on the buyer’s location.
- Origin-based states listed are Arizona, California, Illinois, Mississippi, Missouri, Ohio, Tennessee, Texas, Utah, and Virginia.
- California is a modified origin state: state, county, and city taxes are sourced to the origin, but district taxes are sourced to the destination.
- The guidance applies to sales within the seller’s home state; out-of-state or remote-seller sales may follow different rules.
Source: taxjar.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.
Latest Posts in "United States"
- Wisconsin Treats Sale-Leaseback Payments as Taxable Leases Despite Refinancing Language
- California Publishes Guidance on Sales and Use Tax for Electronically Delivered Digital Products from 2027
- Streamlined Sales Tax Board Creates 2027 Voluntary Disclosure Programme for Remote Sellers
- United States: California to Tax Software Subscriptions Starting in 2027
- California Sales Tax Filing Guide for CDTFA
