Drop Shippers and sales tax

[halloway]

Hi and thanks for a great product. Finally got it up and running and ready to get it airborn.

I have a challenge though. In addition to what we sell and ship, we have affiliated merchants who drop ship for us.

This is so far handled by setting them up as warehouses and forwarding the order to each merchant manually.

The challenge is that each merchant have to charge tax if a customer address is in the same state as the merchant.

I have studied the script and the manual long and hard, but I just can't figure out how to do it or if it is actually possible with version 1.5.4.

Example:
Our business address is Kansas. If a Kansan order a product that will be drop shipped from an affiliated merchant in Missouri, the customers shall not pay tax. The system however charge him Kansas sales tax, which is wrong.

If the customer is from Missouri, it works fine, because we have added the Missouri sales tax.

As soon as we have set up all warehouses, we probably will have around six states where we have to set up the sales tax percentage.
But these should only apply when the customer and warehouse is within the same state.

Is there a way to fix this?

[flaw101]

Since you are actually the one making the purchase from the warehouse, doesn't that make you the retailer and the warehouse just a shipper? I may be wrong, but it just seems that the retailer would be the only one burdened with collecting tax, only if the end purchaser is in the same state as the retailer.

Frank