Gateway Parts

If I buy using a Texas Tax ID, and then sell it out of state via internet, do I need to collect a sales tax?

Example: I am buying a computer part from a wholesale vendor, without paying taxes because I am using a Texas sales tax certificate. I am going to sell this part to someone in California via an internet webpage. Would I collect a tax from the customer on this sale? If not, then the whole transaction was never taxed. I was not taxed from the wholesale and I'm not collecting tax on the resale. Is this the way it is supposed to work?

Public Comments

1. If you were to collect sales tax, you would collect Californai sales tax and remit it to the state of California. You are not required to do this, however. The recipient is liable for the taxes and should be paying them to their state.