Quote:
Originally Posted by PowderedH2O
It seems as though it would have to be based upon the seller's location. How much of Wayfair's sales would be in South Dakota? SD would want a piece of the pie for the sales going out of the state I would think.
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Sales tax is normally based on where the actual sale takes place. If it is at an actual brick and mortar store, that is the location used for the sale and to determine the sales tax on, even if the person doing the buying is from another state or country. This is exactly why states will work together and police businesses across the borders from one another, so people from one state don't cross the state line to buy something like furniture from a business in the next state that isn't responsible to collect and remit the sales tax from the neighboring state the buyers are from. To get around the sales tax, the people would have the purchase shipped to them in their state and not pick it up at the store location because doing so would make them subject to paying the sales tax in the neighboring state where the store is actually located.
When it comes to sales transacted over the internet and by mail/delivery service, the sale is considered to tax place and be subject to the sales tax at the point where the buyer takes delivery and acquires the goods. In other words, at the house/location the purchased items are shipped to. So sales from Wayfair going to locations outside South Dakota are not generally going to be subject to SD sales tax.