One of the questions we have whenever we ship our software to a new state is whether we need to charge sales tax. This get more complicated because some states charge tax on perpetual software but not on maintenance with time-based licenses somewhere in the middle.
We classify software by:
In addition, we make a distinction between physical delivery of software and electronic delivery because this has an impact on the tax status in California and New Jersey.
Given that, so far we have information on the following states (note this is regardless of the buyers tax-exempt status):
Where did you get your information for Maryland? I live in MD, and I was told by the state that sales tax does not apply to intangible things. So physical delivery of software is taxable, but electronic delivery is not.
This question has been answered numerous times here. Basically, unless you have a physical prescence in the state you are shipping to you do not charge sales tax. See the US Supreme Court decision on Quill vs The State of North Dakota.
Quill vs The State of North Dakota If you are in Illinois, you only charge sales tax on sales to people who reside in Illinois. In addition, Illinois only charges sales tax on commercial/retail software (no matter how it is delivered). Custom software is not taxed.
Gary is right. You charge taxes only to customer on your state.
Things are different if you are using a payment processor like AvanGate, FastSpring, etc.
Since they are resellers of your software they charge taxes to customers that reside on their state not yours.