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sales tax question

I am located in Kansas, and I am trying to set up the sales tax correctly in my shop. However there are several hundred different tax rates throughout the state! According to my state laws, if the purchase is non-delivery I need to charge sales tax for my place of business (since I run it from my home, and I live in the county outside of the city limits, my tax rate is 7.3% whereas in the city would be 8.3%), however if the purchase is delivery then I need to charge sales tax based on the place of delivery. The problem is, many of the cities are the same in that they charge a different rate in the city and out of the city, even though it is the same zip code. Not to mention the fact that there are several hundred different tax rates across all of the zip codes.

Does anybody else have state sales tax issues like this? How do you deal with it? Just collect the state rate and absorb the extra when I file my state sales tax??

Thank you to anybody that can help!!!

5 Responses

Ok, I have done some more research and I think what has to happen is anybody making a purchase in Kansas has to select payment method as "other" and I will figure out what exactly they need to be charged based on their address and then send them a PayPal invoice for the amount.

BUT this leads me to another question - how does billing/Etsy fees work when they select other and then I need to calculate the sales tax on my own?
Etsy's billing fees work off of your listing amounts independent of how you take payment.
Kelsey, I live out in WA, but we have a similar tax code (and ours isn't by county or city or anything, it's something to do with zip codes and is VERY confusing). I averaged out the sales tax rate, and collect that amount from every Washington sale.
At the end of the year you are required to hand over any sales tax you collected, even if it was too much by percentage -- so I take a slightly lower percentage than the highest rate, and I'll pay the difference at the end of the year if I need to.
Oh, and if you want to do sales tax adjustments, you can always use the Paypal invoicing system, which works quite well and is very straightforward.
Many states require the invoice to reflect accurate sales tax so we can't collect the wrong amount and just send the right amount in to the state at the end of the period.

We ask buyers to use "other" and invoice through Paypal after checkout, sent directly to the buyer.

Etsy doesn't take a transaction fee on the shipping, I assume the same goes for sales tax but I haven't checked.

I'm not worried about it either way--we asked for an on-site way to do our state tax when they set it up but they designed it in a way that prevents us--residents in the state they have their own business in--from being able to use the sales tax calculator. :(

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