A number of factors must be considered by sellers and purchasers when evaluating sales and use tax compliance for transactions involving multiple states. Among other things, a seller must consider the location of delivery to the purchaser (which may depend on the method of delivery), whether the seller has nexus with the destination state, and, if so, whether the property is taxable in the destination state. Sellers must also verify exemption certificates provided by purchasers who claim a tax exemption, which may require an analysis of another state’s rules with which the seller is less familiar.

A purchaser must consider whether tax was properly collected by the seller, whether it is required to remit use tax on property when the seller did not collect tax, and the tax implications that arise when property is delivered in one state but will ultimately be used by the purchaser in one or more other states.