Tax with billing address vs shipping address

[jnmunsey]

I noticed a customer of mine just got an order with a billing address in my customers home state and city (Houston Texas USA), but a shipping address out of state.

 

OSCommerce did not charge sales tax.

 

Does anyone know the sales tax laws? I would figure tax would still need to be included if billed in state.

 

Thanks

 

-John M

[hpqnet]

I too operate a store out of Houston, TX and have the same concern. Someone within texas orders the product and has it shipped out of state it does not charge tax. Looks to be based on the Ship to location. Is this right?