Think because you’re not a retailer you don’t have a sales tax obligation? Think again. Often, companies that don’t collect and remit sales tax actually have much more rigorous rules to follow for compliance. And when it comes to pleading your case to the state auditor, ignorance isn’t bliss.
Manufacturers, wholesalers, distributors, resellers, related entities, governments and not-for-profit and charitable organizations are some of the business types who do not expect to pay sales tax. The burden of proof is on the seller, however, should the state express concern about exempt sales, claiming “I didn’t think I owed sales tax,” likely won’t save you from an audit.