I also had a similar problem with the State of VT. I lived in NH, but they said I had to collect sales tax on all sales to clients in VT since I “worked in VT” (ie. I did a photo shoot for a ski area). They wanted me to pay the sales tax that I did not collect from ALL VT clients for the past five year, plus interest and penalties, which totaled about $17,000. It was like dealing with the Mafia. By the way, the sate tax law said that only “tangible property” was subject to sales tax. They said that although I only licensed the use of an image, “it was based on something tangible.” Yes, but so is a phone call.
David Brownell
He's discussing the news that the State of Utah is sending tax audit letters to photographers living there so they'll
cough up money to feed the beast.