As you may know, the Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on these retailers. This means regardless if a company is brick and mortar, or only an online retailer the sales tax ruling applies. In the future all online retailers may be required to impose sales taxes on all U.S. states, and may even extend to countries outside of the U.S. and its territories.
Some states have extended the tax collection obligation to online marketplaces. We believe this ruling is unfair to small businesses and we will continue to call for greater simplicity. We are actively aligning with other online sellers to reverse this Supreme Court decision.
What this means for our customers: Regardless of where you’re physically located, if you buy from online sellers located in other states from which you reside, those states may require you to pay applicable taxes on your transactions.
Therefore, based on these new laws, we will calculate, collect, and remit sales tax for orders shipped to customers in the following states on the following schedule:
- Washington—starting Jan 1, 2019
- Pennsylvania— starting July 1, 2019
- Oklahoma—starting July 1, 2019
Our website Host may already be implementing this sale tax rules on the above states without our company having any real control.
Once we start collecting tax in these states, you will begin to see sales tax charges on your orders applied by our website, mandated by the Supreme Court. We have no control over this decision by the Supreme Court.
There are no opt-outs for selling items into the states listed above except that we stop selling to those states. This is not an action we wish to take. We wish to allow each purchaser the right to decide if they buy from our site, or any other online site for that matter. This ruling affects all online sellers, not just our site.
Additional states will likely be added to the above list as time moves forward. We believe this is unfair to small businesses, but we have no choice in the matter.