There are currently 37 states that accept your foreign reseller exemption as valid resale exemption documentation for drop shipments. This means that if you as a seller have submitted to Lightning Source the necessary paperwork for resale tax exemption, you may also be eligible for resale tax exemption in other states with the completion of a Reseller Affidavit. (See “What is a Reseller Affidavit?” for more information on Reseller Affidavits).
All states that have sales tax other than California, Connecticut, District of Columbia, Hawaii, Massachusetts, Maryland, Mississippi, New Mexico, and Tennessee allow a “foreign ” registration to certify a sale for resale if documented properly. Six of the thirty-seven states—Colorado, Illinois, Michigan, New York, Pennsylvania, and Virginia—require their own state-issued form, in addition to the Resale Affidavit, to be completed in order to document a “Foreign ” exemption. Forms for these states, as well as the Resale Affidavit, can be found in the tax section of the Lightning Source account dashboard. (See “I am tax exempt. How do I submit my documentation?” for more information).
Lightning Source is currently registered to charge sales tax in 14 states, many of which currently recognize “Foreign” or “Home” exemption rules. We highly recommend completing all the resale and exemption documentation as requested on the Lightning Source website, so if Lightning Source is required to register in additional states and/or if sales tax laws change to include services currently not taxable, Lightning Source will have the information already on file for you.