No states have full sales tax reciprocity agreements. However, some states have agreements that exempt certain businesses or transactions from out-of-state sales taxes. These agreements are usually between bordering states and often focus on specific industries.
Specific Examples of Partial Reciprocity
For example, some states have reciprocal agreements for sales of goods by businesses located in a neighboring state if those businesses also have a physical presence, or nexus, in that state. These agreements can be quite complex and depend on the specific details of each state’s laws. For precise details on the rules for specific situations and industries, always consult the tax authorities of the states involved.
Where to Find More Information
Each state’s Department of Revenue website is the best place for accurate and up-to-date information on sales tax reciprocity. These websites offer detailed explanations of their respective rules and often provide guidance and resources to help you comply with the law. Look for information on “sales tax reciprocity,” “sales tax nexus,” or “interstate sales tax.” Checking the websites of both the origin state and the destination state is always recommended.
