If a business ships or delivers merchandise to an address in a different city within the same state, and the state has destination sales tax status, how does this business remit the tax collected to that city? My state has over 100 cities and over 50 counties. If I start a mail order based business that ships everywhere in the state, as I understand it I'm supposed to collect sales tax at the rate specific to the destination city and county. As a business I'm required to file sales tax returns in my own city, but how should I remit the tax to the destination cities? Must I submit a tax return for each city? And how do I do that without having a business license for each city? Every website I've found says that it needs to be collected but doesn't tell you what to do with the money you collect.
A side question is, (just out of curiosity,) how do cities manage to enforce the sales tax for delivered merchandise? It would seem that it would need to be a pretty high dollar purchase to make it worthwhile to trace back to the shipper.
A side question is, (just out of curiosity,) how do cities manage to enforce the sales tax for delivered merchandise? It would seem that it would need to be a pretty high dollar purchase to make it worthwhile to trace back to the shipper.