Sales tax to an Indian reservation?

Question

We are shipping material to a contactor doing work on an indian reservation. Would this be subject to sales tax? Also it

is across state lines. What are good resources to research these issues. The state of Texas comptollers office takes weeks to respond to questions.

Answer 1

1. sales tax is wen yu bi it.  Reesun yu bi it or purpus it is for

dont matter.

2. If yu send it sumweer, dont affekt taxes yu gotta pae.

3. I assume Texas is weer yu bi it; Tex dont hav indian rezervashuns.

Answer 2

Unless the contractor gave you a valid exemption document, you will need to collect sales tax for Texas.

The method of delivery also has some bearing on whether you are required to collect TX sales tax or not.  If you are using your trucks to make deliveries, then you need to collect TX sales tax.  If you use a common carrier like UPS, FedEx, or USPS.  You do not need to collect sales tax as long as you do not have any other nexus with TX.

The fact that the work is taking place on an Indian reservation does not make the transaction exempt from sales tax.