Sales Tax for Outdoor Businesses: It’s a Jungle Out There

(How to Survive Multi-State Tax Rules for Rentals, Tours, and Gear Shops Without Losing Your Compass)

Navigating sales tax laws for your outdoor business can feel like bushwhacking without a map. One wrong step... and boom — tax trouble.

Many outdoor businesses serve customers from multiple states — or even operate in more than one. Sales tax laws are different everywhere (and they keep changing!). Let’s dive into some simple, non-scary breakdowns of multi-state tax rules for rentals, tours, and gear shops.

What is Sales Tax and When Does It Apply?

On a general level, Sales Tax covers tangible items (gears, merchandise, rentals) and some services (yes, tours can count).

The Big Question: Where is the sale considered to “happen” in the outdoor world?(Hint: It’s usually where the customer takes possession or the service occurs.)

The Concept of Nexus (No, Not the Sci-Fi Kind)

So, what in the world is Nexus? It is defined as “When your business has a connection strong enough to owe sales tax in that state.”

Some examples of Creating Nexus include:

• Physical presence (shop, rental shed, guide office)

• Employees or contractors working in that state

• Regular delivery or shipping into that state

• Exceeding economic thresholds – these are dependent upon each state (e.g., $100K in sales or 200 transactions)

Areas where Outdoor Businesses may get tripped up: Mobile services, pop-up rentals, tours across state lines.

Sales Tax for Gear Shops

I believe we are all (mostly) aware that anything we sell within our stores is taxable. I’m talking about those Wilderness System kayaks, or those BOTE paddleboards or even those awesome Trek bikes and all the great accessories in between.

What about if you are selling online? Well, you may owe tax in the customer’s state (if you have nexus). But if you have no nexus in a state = no tax collection required (but buyer may owe Use Tax).

Sales tax for rentals (Kayaks, Paddleboards, Bikes, etc.)

Here’s the deal - Rentals = Tangible personal property = Taxable in most states. Short answer: Yes (mostly).

The tax you collect, report and payout are based on where the customer picks up or uses the rental.

Example: Rent a kayak in Georgia, customer uses it there = Georgia sales tax due.

*Crossing those state lines alert! Delivery across state lines may change the tax state.

Sales Tax for Tours, Lessons & Guided Adventures

Are you offering amazing tour experiences? They may be taxable. It depends on the state.

• Some tax “recreational services” (like Colorado).

• Some don’t tax services at all (like Oregon — bless them).

Are you offering guides, such as river tours crossing state lines, across multiple states? They may be taxable. To cover your butt, check whether you need to register in each state.

• Hot Tip: Check if “admission fees” or “tour services” are taxed locally.

Checklist to make sure you are managing multi-state sales tax like a pro

• Register in All Necessary States (where you have nexus).

• Use Sales Tax Software (like Avalara, TaxJar, or QuickBooks Sales Tax) to automate calculations.

• File Sales Tax Returns on Time (they may be monthly, quarterly, or annually — each state makes up its own mind).

• Pro-Tip: Keep excellent records in case of audit!

Common Mistakes Outdoor Businesses Make (And How to Avoid Them)

1. Ignoring economic nexus laws for online/remote sales.

2. Forgetting to charge tax for rentals or add-ons (like life jackets or helmets).

3. Assuming services are always non-taxable (big mistake in some states).

4. Not tracking sales by location properly.

Multi-state sales tax is confusing — but manageable with the right info and tools. Yes, the sales tax jungle is thick — but with a good guide (ahem, like me) and a clear trail map, you’ll make it through in one piece. Need help taming your business’s sales tax beast? Reach out — I make this stuff simple for outdoor pros like you.