Sales Tax Information
We collect sales tax online and in our stores according to set rules & regulations that vary on a state-by state basis.
Why do we collect sales tax in certain states?
In June 2018, the United States Supreme Court ruled that states can require online sellers to collect sales tax based on the volume or value of transactions into a state, also known as "economic nexus". Traditionally, a nexus occurs when you have a physical presence in a state, such as a store or warehouse. Some states have a broader definition of nexus, and can include any of the following:
- Solicitation of sales
- Fulfillment services
- Presence of inventory
- Presence of employees
Calculation of Sales Tax
Sales tax is automatically calculated at checkout, and varies by state, county and local jurisdiction based on set tax rates determined at the state level. *Important: some states are considered "Destination" based states for the purposes of sales tax calculation, and others are considered "Origin" based states. See below for more detailed information.
Destination vs. Origin States
Destination States
In a destination state, the sales tax we charge is based on the address of the customer shipping location. If we have no nexus in the state of your shipping address, then no tax is charged. If we have nexus in the state of your shipping address, then the zip code of the shipping address is used to determine state, county, and city taxes. Most states are "Destination" based tax states, including Washington D.C.
Origin States
In an origin state, the sales tax we charge is based on our location's nexus. If we have no nexus in the state of the shipping address, then no tax is charged. If we have nexus in the state of the shipping address, then the zip code of our company's nexus is used to determine state, county, and city taxes.
Origin based states include the following: Arizona, California, Illinois, Mississippi, Missouri, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, Utah and Virginia. California is mixed: City, county and state sales taxes are origin-based, while district sales taxes (supplementary local taxes) are destination-based.
There are a few exceptions to the above in California and Alabama. You can read more about these here.