Smartlabs Disclaimer Regarding Sales Tax
You may have noticed that you’re now getting charged sales tax on newly placed orders, but this was never the case in your state before, and you may be wondering why. As a result of the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. states have been issuing new legislation nationwide.
Long story short, we are now required to collect and remit sales tax in a greater number of states than ever before.
Below is a list of states that we are registered with and required to collect and remit sales for. We will be continuously updating this list as new states are added. *We will also be notifying all customers with billing/shipping addresses in affected states prior to enabling tax in those states.
- New Jersey
- North Carolina
Please be advised that the list of states now requiring sale tax continues to grow. If you see sales tax on your order, we have confirmed that the new sales tax laws for your state are in place and we are charging accordingly.
What changed? Well, previously the legal precedent for Nexus (i.e. tax presence) was under the Supreme Court Quill Corp v North Dakota decision, which established that Nexus could only be established by physical presence in a state. Therefore ecommerce businesses without physical locations, inventory, or sales reps operating in various states were not subject to state sales tax requirements.
However, the new ruling in the Wayfair decision indicated that the internet has changed the nature of commerce and that an economic threshold based on total sales or transaction volume is reasonable. Therefore most states have now established economic thresholds similar to those ruled upon in the Wayfair decision; which have gone, or are now going into effect across the country.
We’ve implemented new software to assist with these requirements. We apologize in advance for any in convenience.