We are purchasing items from a company outside our state and shipping them to a warehouse in another state, from there they will be moved across the border into Mexico to our testing facility...

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Q. (cont.) I am guessing we have nexus in Texas since we have a warehouse there and should pay Texas sales tax? Or is it the vendor that should have nexus in that state?

A. We assume the purchased goods are for your company’s consumption and not part of your raw materials or items for resale. If the vendor has nexus in Texas, it should charge/collect sales tax from you; if it does not have nexus and does not charge sales tax, then since you have a facility where you are taking delivery of the product, you are likely liable for paying Texas use tax.

State sales and use taxes are complex and vary by state. You should contact the Texas tax department to confirm your responsibilities: 800-252-5555. http://comptroller.texas.gov/taxinfo/sales/

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