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BTLG Table of Contents > Sales and Use Tax Annotations > E > 220.0000 Engaged In Business > Annotation 220.0232

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E

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220.0000 "Engaged in Business"

Annotation 220.0232

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220.0232 Manufacturer's Representatives. There are two common relationships that a manufacturer's representative could have with the manufacturer. If the representative makes a retail sale of tangible personal property, the representative owes the sales tax, or is required to collect the use tax, even if the manufacturer ships the property, per the representative's directions. If the representative solicits orders in this state as an agent for the manufacturer, these services make the manufacturer "engaged in business" in this state, and requires the manufacturer to collect the applicable use tax and pay it to the state. 9/9/93.