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If I have a business in IL and buy product and sell it in TX am I tax exempt?

Full Question: If I have a business in Illinois and buy product and sell it in Texas am I tax exempt?

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Answer:

Diane Yetter photoThe determination as to whether you are required to collect tax for sales you make in different jurisdictions depend on whether you have a legal presence in the ship to state. If you maintain a substantial physical presence through people (your own or agents) or property in TX, then you may be required to collect tax on taxable sales into TX. If you don't have the required presence in the state, then you should not collect sales tax. Rather your customer will have the obligation to remit use tax on the purchase.

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