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i am creating an application with a shopping cart feature. i need to implement sales Tax feature. My Question is, where can i get official data with state tax percentage for each state? Does state tax applied on the state of the shipping address or the full address is used to calculate it ? so where can i get that data with state tax percentages ? help me please

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rated:
This is a huge topic if you want to do it correctly. There are subscription services (web apis) that do this stuff for you it can get so complex. It should be done by the ship-to address. A lot of shopping carts determine the rate by state or zip code only. The reality is most states have a state rate and a county rate. Some have a city rate. NYC can have borough rate where even a single zip code can cross sales tax boundaries.

Add in the complexity of different types of products having different rates and it gets crazy.

For a small time shopping cart, I would let the store owner pick a state and optionally a range of zip codes and let them plug in the rate. You don't want to be responsible for determining the rates.

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if this is for a class programming assignment, you can just put in dummy numbers, no one will care.

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The easy answer to this is to run your business in a state that does not have sales tax like Oregon.

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You don't have to collect sales tax for states where you don't have a physical presence. Federal legislation regarding sales tax for online purchases has been proposed before but hasn't passed, and generally includes exceptions for businesses with revenue less than $1M.

If you want or need to collect tax anyway, streamlinedsalestax.org might be a useful resource for you.

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doveroftke said:   You don't have to collect sales tax for states where you don't have a physical presence. Federal legislation regarding sales tax for online purchases has been proposed before but hasn't passed, and generally includes exceptions for businesses with revenue less than $1M.

If you want or need to collect tax anyway, streamlinedsalestax.org might be a useful resource for you.

  This is generally true. However, different states have different rules on what "physical presence" is.

OP, this is an incredibly complicated and time consuming effort you're considering undertaking. If you're only goal is to create a shopping cart, it would make more sense to let the merchant deal with the sales tax rate. Remember, you don't only have to worry about the rate itself, you have to worry about what products are not taxable, what services are taxable, what bundled transactions will occur and how each individual state treats them, how states source both sales shipped from out of state into the state and from one location in the state to another, etc.

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This will be a challenge. I live in the county by just a few blocks. Legally, no city nor county sales tax. Just state sales tax. Most shopping carts where I shop on line use my zipcode most of which are in the city suburb = different city by a few blocks. A few chopping carts use the GPS location ID off the internet server that my ISP feeds them = totally wrong city by 9 miles.

Google has some good suggestions, but you may have to go state by state which includes a city/county listing.

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A company I used to work for sells a software package that uses the geolocation of the address to calculate the sales tax. The geographic and taxiing data is updated monthly. It will cost you about $20,000 up front and $2,000 per year. That's probably not what you're looking for.

Laws vary by state. In Texas, sales tax is calculated based on the location of the sale. For online sales, it depends on the location from where the item ships. If it ships from within the state, taxes are based on where it ships from. If it's shipped from out of state, then the sales tax is based on the delivery address. If the item is non-taxable, the the shipping charge is another taxed, but for taxable items, the shipping charge is taxable, too.

Or, to put is succinctly, it's complicated.

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mk1039 said:   i am creating an application with a shopping cart feature. i need to implement sales Tax feature. My Question is, where can i get official data with state tax percentage for each state? Does state tax applied on the state of the shipping address or the full address is used to calculate it ? so where can i get that data with state tax percentages ? help me please
  
Better rethink this project

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OP, I have once worked on a Sales Tax Project (the smaller Org was not collecting ST prior - it was within it's legal rights to do so - no debate about it - it then got acquired by a huge Global Org and one of the legal stipulations to fully merge the smaller Org into the Larger Org was to roll out Sales Tax implementation. You cannot even dare to imagine how complicated the ST rules are.....there are hundreds of thousands of "Tax Jurisdictions" all taken into account; and you will be at a serious mess if you underestimate how many times these percentages change. The exact % of SalesTax to be collected depends on what is the Product you are talking about (SKU) and what other products (SKUs) it's being sold along side. For the Orgs I was part of, It is humanly impossible to run the calculators....Like told by supersnoop there are dedicated software vendors that provide this packaged service and it is the ONLY ONE TIME I have felt the true need a client should pay monthly/annual fee for subscription/licensing.

Remember: It's not at the point of collecting Sales Tax, but it's the potential scrutiny you are subjected to by any of these thousands of Tax Jurisdictions. Collecting is the small story, remitting it to the respective Tax Authority is the horror story, if not executed accurately.

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doveroftke said:   You don't have to collect sales tax for states where you don't have a physical presence. Federal legislation regarding sales tax for online purchases has been proposed before but hasn't passed, and generally includes exceptions for businesses with revenue less than $1M.
 

  
^^^^^ +1

Whatever time/money you spend trying to comply with the thousands of tax laws/jurisdictions there are out there would be better spent figuring out how to make sure the above advice applies in your situation. Find out how to structure your business in a way that you only collect sales tax within your own state. For your customers out of state, it will be their responsibility to report to their tax man that they bought your stuff and didn't pay tax on it. 

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vegas4x4 said:   This is a huge topic if you want to do it correctly. There are subscription services (web apis) that do this stuff for you it can get so complex. It should be done by the ship-to address. A lot of shopping carts determine the rate by state or zip code only. The reality is most states have a state rate and a county rate. Some have a city rate. NYC can have borough rate where even a single zip code can cross sales tax boundaries.

Add in the complexity of different types of products having different rates and it gets crazy.

For a small time shopping cart, I would let the store owner pick a state and optionally a range of zip codes and let them plug in the rate. You don't want to be responsible for determining the rates.

  
This, to a certain extent.

OP needs to describe his situation better. First, does OP know anything about Sales/Use tax? The first thing you need to realize is that if you're an online store you are not responsible for collecting/remitting use tax for any states that you ship to that you are not domiciled in.

If you're already an established business across the country with many business locations domiciled in multiple states, then that is a different story. As someone that works with tax systems I would highly recommend a subscription based service that is responsible for updating tax information for you. You're talking somewhere along the Ballpark of 65,000+ jurisdictions that can change their tax rates, taxable products, and tax laws at any given point.

As the Quoted post says, tax-ability rates vary by state, county, city, even zip code based on the Zip+4 which is the most ideal data set to use. Furthermore, it varies by the product, who it's sent to, what it's used for, etc.... You could have a product that is taxed at the city level that is not taxed at the state level, etc...

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doveroftke said:   You don't have to collect sales tax for states where you don't have a physical presence. Federal legislation regarding sales tax for online purchases has been proposed before but hasn't passed, and generally includes exceptions for businesses with revenue less than $1M.

If you want or need to collect tax anyway, streamlinedsalestax.org might be a useful resource for you.

  
Mostly correct, however - there are plenty of exceptions to this rule. You don't actually have to have a physical presence (a Buidling/Office/Store) to be liabile for collecting sales tax.

The correct definition is a Nexus:
Substantial nexus (referred to generally as simply "nexus") is a general U.S. Constitutional requirement that is subject to interpretation, generally by the state's comptroller or tax office, and often in administrative "letter rulings".

Examples of a Nexus that do not require a physical presence would be sending out sales representatives to a given state or more recently a "Click-through Nexus" See: https://www.avalara.com/blog/2016/06/30/a-guide-to-click-through-sales-tax-nexus-for-small-businesses/

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You have asked a simple question with a extremely complicated answer.

So I'll answer you with a simple answer.

Go here and download all the rates.
http://www.taxrates.com/download-tax-tables/

It's free. Download it once a month to keep updated.

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supersnoop00 said:   A company I used to work for sells a software package that uses the geolocation of the address to calculate the sales tax. The geographic and taxiing data is updated monthly. It will cost you about $20,000 up front and $2,000 per year. That's probably not what you're looking for.

Laws vary by state. In Texas, sales tax is calculated based on the location of the sale. For online sales, it depends on the location from where the item ships. If it ships from within the state, taxes are based on where it ships from. If it's shipped from out of state, then the sales tax is based on the delivery address. If the item is non-taxable, the the shipping charge is another taxed, but for taxable items, the shipping charge is taxable, too.

Or, to put is succinctly, it's complicated.

Yes, complicated. In Texas, if it is shipped from out of state by a seller with no physical presence in the state, the sales tax becomes a use tax, payable by the buyer. The seller does not collect sales tax but the buyer is supposed to report and pay it. Since there is no income tax in Texas and individuals/families do not file a state tax return or even have a state tax account, very few people pay use tax.

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pay for this https://taxify.co/

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