Sales and Use Tax Obligations Created by Drop Shipment Sales

Hilger, Randy; Christian, Adina
April 2011
Journal of State Taxation;Mar/Apr2011, Vol. 29 Issue 3, p43
Academic Journal
The article focuses on sales and tax obligations relative to drop shipments in the U.S. It states that several U.S. states require the collection of tax by a wholesaler, when it sells goods to a retailer, who is not entitled to accumulate sales or use tax in the consumer's home state. It mentions that wholesalers must collect tax from consumers based on the retail sales price in Massachusetts, while Maryland and Mississippi require wholesaler to collect tax based on the wholesale price.


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