Techniques

I put this under the wrong Blog Topic initially (oops)

Photographed a Black Forest Fire Benefit event and set up a website of my images. After receiving requests for prints I plan to set up purchasing options. This is new territory for me, I've been surfing our member's websites to get ideas on how to handle sales – I'm held up on the internet sales tax protocol. To tax or not to tax? Any insight would be helpful. If interested in the benefit (a sheepdog trial) check out my site at www.tammyhammond.zenfolio.com

Tax collection is a pain, but fortunately you are ONLY required to collect taxes where you have a PRESENENCE. This means that unless you have property (sales location) in another state, you are only required to collect state and local sales tax. So now that gets a bit complicated when you have a website and not a physical location like a gallery. If the person that you are selling to lives in the state, but out of your local tax district, then just collect state tax and file with the state. If they are local to you then you should collect both state and local and file with both. If they live out of the state, then you do not need to collect anything or file with anyone.
As a side note, there is a move afoot by many states to make websites and mail-order stores collect taxes for the various states. They would also like to extend that to local as well but as you can see the amount of time for people to manage tax codes for hundreds of thousands of places id simply unmanageable. Right now the courts have said that you must have a physical presence in the state, but stay tuned. Another thing that complicates it some is that some large stores are voluntarily collecting and filing with states, but this is voluntary. I don’t believe any state is going to try to reach out for some small business.
Ron

Reed Photography has a portal for photographers that includes a shopping cart. It cost about $100 per year and allows you to link your image on your web site to an image in the portal. You decide what size prints you want to sell and the profit margin you want and Reed provides order fulfillment, shipping and the money side of the transaction including tax. They take a cut of your profits and send you the rest.