[USER]

Tax question. We have a farm in OK, but live in TX. All of our farm to table beef is in OK, but we frequently deliver to our neighbors in TX.

Our accountant says that our TX deliveries need to be charged the TX tax rates as opposed to the OK tax rates where the beef originates.

Can anyone clarify? I have heard conflicting information from other farmers.

[Melissa]

You pay the tax of where it is delivered to, not where it originates from.

[Sam]

Enter the address. Charge this rate. Remit to Texas according to the deadlines you receive when your sales tax application is approved.

I believe your deliveries lead to your sales tax nexus.

Those who pickup at your OK location pay OK sales tax even if Texas resident.

Though I’m confident, verify with a SALT professional.

[Aaron]

It’s always the tax rate of the location it’s being delivered to.

[Kitson]

Are you operating as a business in Texas? Depending on your business structure you should be taxing the local rate.

Ultimately, the buyer needs to pay the proper sales tax.

[Author]

Posts