What is the status of interstate commerce being exempt from sales tax?
Only companies that sell only on the internet are currently exempt from collecting sales taxes on sales shipped to states outside the one their business is in. Most of the states have laws stating that any company that advertises in or has sales representatives in their state must collect sales tax on behalf of that state. States have informed us that we are responsible for collecting their sales tax on sales shipped to their state. There have been a number of court cases and all of them were decided in favor of the states. The taxes we collect from you are returned to your state and district and not kept in California.
