[MCS]

If the retailer has a store location in the state that he's shipping to, then there'e sales tax charged:

For example - If you Order from Barnes and Noble.com and have it shipped from Tennesee (I don't know where their Distribution center is) to Oregpn, and there's a b&n store inOregon, you will get charged state sales tax.)

If you order product form Amazon.com and their DC is in New mexico shipping to Oregon - you won't be charged a sales tax.

This is how Amazon has been avoiding charging a tax to their customers for years. They put their DC in Pennsylvania to service their high volume customers in NJ, NY, and Connecticut

There's some rules as to what constitues a location within the state, I don't know what it is.

As for the wholesaler/reseller rules, most retailers have what's called a "reseller's tax exemption" certificate. Its valid by state. If you sell to a retailer that then in turn, sells it to a final consumer, only the final transaciton is levied the tax.

I.e. If Polo sells a box of shirts to Macy's New York, Tax is not charged. Macy's has a tax exemption certificate valid for the state of NY. Macy's will charge a state sales tax to the end-customer.

There's been talk about hitting consumers with a VAT tax, common in Europe and Canada. A Vat tax works similar to the sales tax, except its levied in every transaciton. i.e Manufacturer sells to a distributor - chaged a tax, distributor sellls to a retailer, taxed agian, and retailer charges a tax to the final consumer. The taxes can really compound and spiral.

Very touchy subject - May go under the Politics board.

Hope this helps.