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Can I collect sales tax from customers in different states without violating tax laws in Montana? What are the requirements?

Based on the provided context documents, here are the requirements for collecting sales tax from customers in different states without violating tax laws in Montana:

Requirements for Collecting Sales Tax from Customers in Different States

  1. Register for a seller’s permit in Montana [1.7].
  2. Collect sales tax from customers in Montana and remit it to the Montana Department of Revenue [1.1].
  3. Determine if you have a sales tax nexus in other states. A sales tax nexus is a connection between a business and a state that requires the business to collect and remit sales tax in that state. A nexus can be created by having a physical presence in the state, such as a store or warehouse, or by meeting certain sales thresholds [1.2].
  4. Register for a sales tax permit in each state where you have a nexus [1.2].
  5. Collect sales tax from customers in each state where you have a nexus and remit it to the appropriate state tax authority [1.2].

Additional Information

  • Liability for payment of tax – security for retailer without place of business – penalty: Liability for the payment of the sales tax and use tax is not extinguished until the taxes have been paid to the department. A retailer that does not maintain an office or other place of business within this state is liable for the sales tax or use tax in accordance with this chapter and may be required to furnish adequate security, as provided in 15-68-512, to ensure collection and payment of the taxes [1.2].
  • Imposition and rate of sales tax and use tax – exceptions: A sales tax of 4% is imposed on accommodations and campgrounds, and on the base rental charge for rental vehicles. The sales tax is imposed on the purchaser and must be collected by the seller and paid to the department by the seller. The seller holds all sales taxes collected in trust for the state. The sales tax must be applied to the sales price [1.3].
  • Collection of sales tax and use tax – listing of business locations and agents – severability: A person engaging in the business of selling property or services subject to taxation under this chapter shall collect the sales tax from the purchaser and pay the sales tax collected to the department. A person engaging in business within this state shall, before making any sales subject to this chapter, obtain a seller’s permit, as provided in 15-68-401, and at the time of making a sale, whether within or outside the state, collect the sales tax imposed by 15-68-102 from the purchaser and give to the purchaser a receipt, in the manner and form prescribed by rule, for the sales tax paid [1.4].

Conclusion

To collect sales tax from customers in different states without violating tax laws in Montana, you must register for a seller’s permit in Montana, determine if you have a sales tax nexus in other states, register for a sales tax permit in each state where you have a nexus, collect sales tax from customers in each state where you have a nexus, and remit it to the appropriate state tax authority. Additionally, you must ensure that you are liable for the sales tax or use tax in accordance with Montana tax laws, collect the sales tax from the purchaser and pay the sales tax collected to the department, and obtain a seller’s permit before making any sales subject to Montana tax laws.

Source(s):
Jurisdiction

Montana