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States with Origin sourcing or Special sourcing rules

A list of special sourcing states and states that use origin sourcing.

Environment

AvaTax

Resolution

Sourcing determines how tax should be applied to a transaction. Tax rules are applied based on the origin or destination address, depending on state laws. 

Watch our "What is Sourcing" video.

 

Origin Sourcing - Apply sales tax to products based on their point of origin, for intrastate transactions (within the same state).

Example: Product shipped from Springfield to Chicago within the state of Illinois. Tax is based on the Springfield address, the origin.

Note: For services, AvaTax typically applies tax based on the destination address.)

  • Arizona
  • Illinois
  • Missouri
  • New Mexico
  • Ohio
  • Tennessee
  • Utah
  • Virginia

 

Mixed Sourcing - The tax rate depends on the product, service, or unique jurisdiction rules. 

  • California
    • Products in counties and local special jurisdictions are based on the origin
    • Products in cities and district special jurisdictions are based on the destination
    • Services are based on the destination
    • See How does California's sourcing work?
  • Texas
    • If local tax rates at the origin address are less than 2%, the destination address is used to apply additional tax up to the 2% limit
    • Some services are based on the destination
  • Ohio
  • Pennsylvania

 

Home Rule States - Self-administered local taxing authorities. See What are home rule states?

 

States with differing sales and use rates - States with at least one jurisdiction where the sales and use rates are different. See a compliance video on tax types.

  • Alaska
  • Alabama
  • Arizona
  • Colorado
  • Iowa
  • Illinois
  • Missouri
  • Mississippi
  • New Mexico
  • Oklahoma
  • South Dakota (only the city of Carthage)

 

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