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Steve is passionate about rare orchids but can’t find them in Minnesota, so he orders his...

Steve is passionate about rare orchids but can’t find them in Minnesota, so he orders his supplies online from an orchid supplier with headquarters in California. The supplier has all of its facilities in California and collects payment in California. Does Steve have to pay either Minnesota or California state sales tax on the orchids? One year later, the supplier opens a warehouse in Minnesota to handle its online orders for the entire country. Is Steve now required to pay Minnesota states tax? Provide a 1-page double spaced response.

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Answer #1

In today's business e-commerce gives access to a wide range of markets and hence there is a confusion and complication as to figure out the application of sales taxes.

Let's see how the sales tax charges an individual, one has to pay the sales tax of his  on state, if he pics the item in his own state has the item deliver to address in that state and they place there delivery order when they are residing at the state. The important thing to note is that if the individual is a non resident of the state or otherwise of he is out of state then he is in no need to pay the local tax.

In first case California tax is applicable.

One needs to pay the local charges of another state if he has a physical presence in that state example a retail store or an office the charges of other states are applicable. Hence steve has to pay minnesota tax.

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