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I have created a program that I will sell online. How much tax to charge?

Full Question: I have created a program that I am ready to sell online. I set up an account on google checkout to process my transactions but they do not offer support as far as what tax to charge. I am in Louisiana and hope to sell copies everywhere. My question is how much tax to charge?

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Answer:

Diane Yetter photoThere are two issues that must be addressed in your question. The first is where do you have nexus and have a tax collection responsibility. Based on your information, you are located in LA and there you will have to register at least with the state of LA as well as with the city and parish where you are located. You will need to collect LA tax on taxable sales for any delivery into LA as well as city and parish tax for the local where you register is delivered into that locality. Nexus is determined based on where you have maintained a substantial physical presence through people (employees or agents) or property on a temporary or permanent basis. We can assist you in determining your nexus footprint. Once you determine where you have a tax collection responsibility, then you must determine what you are selling and the taxability. It isn't clear from your question what you are selling. If you are selling a digital product, there are states that consider this an intangible and therefore not subject tax. This is not only state specific but also could vary based on the type of digital good. If what you are selling is delivered tangibly, then it is generally taxable unless there is a specific exemption for the product or if the customer is exempt. We are available to assist you in determining where you have nexus and the taxability of the items you sell.

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