Sales Tax Collection
On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision overruled a longstanding physical presence rule, allowing states to require remote sellers to collect and remit sales tax.
Since Wayfair, most (but not all) states have adopted new rules defining what establishes a sales and use tax obligation, known as nexus. Unfortunately for businesses, no two state sales tax nexus laws are alike.
At this time we are required to collect sales tax for the following states:
CA, CO, GA, IL, IN, IA, KY, LA, MD, ME, MI, MN, NE, NJ, NC, ND, OK, PA, RI, SD, UT, VT, WA, WV, WI, & WY
The taxed will be based on state and local ordinances for what is taxable, destination, and whether any county/municipal taxes are to be collected. Taxes will be calculated automatically for all online orders.
At this time there are 11 states that are origin-based for sales tax. This means the sales are taxed where the seller is located. In this case, taxes for these states will be based on where our online presence is located for that state. These states are:
AZ, IL, MS, MO, NM, OH, PA, TN, TX, UT, & VA
California is mixed: City, county and state sales taxes are origin-based, while district sales taxes (supplementary local taxes) are destination-based.
We are doing everything we can to be sure we get this right for each state as information becomes available. We suggest you check with your local State Department of Revenue if you wish, for further clarification.