Sales tax for the internet marketer

State laws are all different, and IANAL...

The answer is 'probably', for the person who lives in TX. If I remember right, a number of Texas counties and cities have their own sales taxes also.

You definitely need to at least get in touch with the department that handles business, usually the State department, or whatever Texas has that is equivalent.

Today, for most sales, you only need to collect sales tax in the state/county/city or other taxing authority you live in. However, there is legislation that is changing that.

Generally, in most places, it is up to the resident to declare and pay sales taxes on anything purchased out of state. Of course, this doesn't happen often, so states are looking for ways to collect these unpaid taxes. I know a number of states are trying to force the issue by making vendors collect and pay sales taxes.

This would place a huge administrative burden on them, especially the smaller vendors that don't have large, automated ordering and/or fulfillment systems. For examples of states that already require sales tax collection, look at the Amazon threads for Colorado and Illinois. I believe Amazon is dropping affiliates in those states because a sale made through an affiliate site is considered the "nexus" of the sale, and therefore a taxable event as if there was a shipping point in that state (which triggers sales taxes in most states).

Beyond that, there are also some states that want vendors to withhold income taxes for anyone that they employ (or pay through affilate programs). So far, it hasn't become legislation yet, but as taxes fall due to the falling economy, they may get more agressive here too. This will further complicate all online sales.

You really need to check the tax laws in your area, as some have exclusions from sales tax for certain products or services.