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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3093
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I have a resale tax question and philadelphia. PA is 6% and

Customer Question

hi,
i have a resale tax question for pennsylvania and philadelphia. PA is 6% and Philadelphia is 2%. My home business is located in Phila. so normally, I charge 8% to my Phila clients for merchandise. Then it gets more complicated. Its there someone I can talk to and how do I pay for the advice?
Submitted: 8 months ago.
Category: Tax
Customer: replied 8 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 8 months ago.
no answer??
Customer: replied 8 months ago.
Not sure I understand how this works
Expert:  Dr. Fiona Chen replied 8 months ago.

Dear Sales Tax,

Have you tried to call the Department Revenue, Sales Tax Department?

There are several levels of sales taxes (rates) and usually, the State collects for all of them and redistributes to various other levels, etc. Usually, you charge the sales tax where your home location is or where you have presence for that particular state. Whether you need to charge, report, or you are exempt for sales and the buyer is due for users tax in their states, -- depends on the state you are selling to.

If you would like to have a phone conversation, I can follow up to offer premium service. Or you may be able to contact services to set up a general request for all experts to answer. But I think by mail like this will do to answer your question. Please feel free to follow up.

Regards,

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

Expert:  Barbara replied 8 months ago.

Different expert here - my name is ***** ***** please allow me to provide you with a specific answer to your question.

Pennsylvania is an origin-based sales tax state. So if you live in Pennsylvania, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located.

You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator or by going toTaxJar.com/mobile on your mobile device.

Example: You run your business in Pittsburgh, Pennsylvania, 15201 and you sell an item to a customer in Philadelphia, 19019. Your tax rate is 7% and your customer’s tax rate is 8%. You would charge the customer your tax rate of 7%. Likewise, if you run your business in Philadelphia and sell an item to a customer in Pittsburgh, your tax rate is 8% and your customer's tax rate is 7%. You would charge your customer your tax rate of 8%.

If you have more than one location in Pennsylvania, then you would base the sales tax rate you charge on the point of origin of your sale.

Important to note: Only two locations in Pennsylvania that have a local tax rate: Allegheny County and Philadelphia. Everywhere else is just the state tax rate of 6%.

If you have more than one location in Pennsylvania, then you would base the sales tax rate you charge on the point of origin of your sale.

http://www.taxjar.com/states/pennsylvania-sales-tax-online/#how-to-collect-sales-tax-in-pennsylvania

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

Expert:  Barbara replied 8 months ago.

Just following up with you to see if you have any other questions. If so, please let me know, and I will be happy to assist you further.

Best regards,

Barb

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