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I have sold to booster clubs out of state, so didn't need to worry about sales tax before. But now I have an order from a booster club that is in my own state (of Texas.)

They are purchasing the shirts to sell to their fans as a fundraiser. I don't charge them tax, right? What do I need to get from them -- meaning do Booster Clubs have a Sales Tax ID number or something similar?

Thanks!
 

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If they do not have a seller permit, you have to charge sales tax.... or include the tax in your price, but the state is entitled to the$$ regardless of the purpose of the club
Yep. If they have a seller's permit, you need to find out how to go about proving that to your state.

In California, there is a form that a business fills out for me to keep on file with a copy of their seller's permit. That way if I get audited, I can prove to the state that I don't have to pay sales tax on that sale because I wasn't required to collect it.

That said, most clubs don't have seller's permits. I just made some shirts and sweatpants for a dance studio for recital. They will then turn around and sell them to the students at a higher price so that they can make a small profit. However, they don't have a seller's permit so I will be charging them sales tax.
 

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Can't say about Texas but here having a business license or permit is irrelevant to tax collection. If the items are for resale, one of the parties must collect the tax, doesn't matter which. If the customer has a tax id then I just need to keep it on file, if they don't there is a form they fill out and sign saying they take responsibility for collecting and remitting tax.
 

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Can you get in trouble knowingly selling to a reseller without a tax ID, even if you collect sales tax yourself? What if they get audited and the auditor comes to you "did you know that this client was operating without a license? they said you were fully aware they were reselling and never told them that they needed a tax ID" Probably not a likely scenario, but you also want to make sure all your bases are covered.
 

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I have sold to booster clubs out of state, so didn't need to worry about sales tax before. But now I have an order from a booster club that is in my own state (of Texas.)

They are purchasing the shirts to sell to their fans as a fundraiser. I don't charge them tax, right? What do I need to get from them -- meaning do Booster Clubs have a Sales Tax ID number or something similar?

Thanks!
Unless they give you a TEXAS SALES AND USE TAX EXEMPTION CERTIFICATION you have to charge them tax.
 

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Google Texas Resale Certificate and download and print the first PDF that is shown. That is the form that you will keep on file. You MUST have a signature on that form. Otherwise the state will make you pay the sales tax.

So many people try to provide us with just a number or a cert with no signature. Don't let them do that. It's solely your risk if you do.
 

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Fenrir, usually taxes are a separate department from licenses/permits. States may have laws that overlap but getting in trouble for one may not necessarily carry over to another.

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