Company N operates a mail order business out of its headquarters in Tulsa, Oklahoma. This year, it mailed $892,000 worth of product to customers residing in Oklahoma and $489,300 worth of product to customers residing in Missouri. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Company N must collect Oklahoma sales tax from its Oklahoma customers because it operates out of Oklahoma. Missouri may also require the collection of Missouri sales tax from its Missouri customers. Each state has its own regulations regarding sales tax collection, so it is important for businesses to understand and comply with each state's laws. Option B is incorrect because Missouri sales tax would only need to be collected from Missouri customers, not from both Oklahoma and Missouri customers. Option C is incorrect because Oklahoma sales tax must be collected from Oklahoma customers. Option D is incorrect because some states require the collection of sales tax on mail order sales.

Company N Operates a Mail Order Business Out of Its