NJ Sales Tax for PA Resident

[Deleted User]

Hi everyone!

[Deleted User]

My FI and I started to meet with NJ based photographers for our wedding.  We live in PA.

One photographer told us we are exempt from sales tax because their studio is in NJ and they have no office in PA where we live.

Another photographer told us we have to pay sales tax regardless of the fact we live out of state and they have no office in PA.

Has anyone had a similar experience?  Does anyone know what the tax code dictates?

Thanks for your help!

PandPMeant2B

I'm not a tax attorney, but, from what I understand, sales tax is based on where something is delivered (or, in this case, where the service is performed).  Something similar happened to us: we ordered our invitations from someone in NJ and then moved to MA, so we had them shipped to us. The girl tried to charge us sales tax because she's used to dealing only in NJ and didn't know any better, but we told her we didn't think that was correct.  She consulted her accountant and it turns out we were right.  Had we driven to NJ to pick them up, we would have had to pay tax. It's always good to know so you don't get ripped off! I hope that helps!

anajax

In most states you only charge sales tax for in-state residents. I do not charge sales tax for those who live out of state if I am shipping their goods out of state. It doesn't matter where the actual wedding is taking place, it only matters where the product is delivered. It's POSSIBLE though that this is different in NJ but I doubt it. I would challenge the photographer who says you have to pay regardless, or even ask the one who says you don't if they can send you a link to information on that. You could just say another vendor is trying to charge you sales tax and you'd like to be able to point them to the correct info on that.

kellymike10414

You should be charged PA tax for the services being delivered in your state, regardless of where the studio is located. I run a small business and often deliver goods to other states. Hope this helps. If a company is doing the right thing, they have to file sales tax in each state they deliver goods to. Just FYI.

anajax

@kellymike10414 this is not true. Actually most states ONLY require businesses to charge sales tax if the product is being delivered in state. So a NJ wedding photographer shipping wedding images to a client in PA should not collect and remit sales tax unless NJ specifically requires that.

This site seems to list NJ as one of the states that does not collect sales tax on out of state residents.

http://taxes.about.com/od/statetaxes/a/Do-I-Charge-Sales-Tax-Or-Not.htm

lc07

I am no tax expert and it does vary from state to state. But in CA we are not required to charge sales tax to out of state clients when the product is being shipped out of state to them. The client, however, is required to claim the purchase and pay "use tax" in their state at their local rate on their own tax return.