Sales tax on clothes varies significantly between states, with different tax rates, tax holidays, and general regulations on the level at which clothing is taxed. In some states, clothing is completely tax-exempt, while in others there are luxury thresholds at which clothing becomes taxable. In this guide, we’ll take a closer look at these thresholds…
Any discussion of climate change these days generally involves questions about how to incentivize transitioning away from fossil fuels to more renewable forms of energy production. One option that’s long been on the table is the introduction of a carbon tax to make burning fossil fuels more expensive. Of course, instituting a new tax is…
Possibly some of the most difficult and confusing tax laws that online sellers have to deal with are sales tax laws. Part of what makes these laws such a headache is that they are different for every state, and the nature of your business combined with a particular state’s laws will determine if you have…
While most people are aware of how their state law applies to them in various situations they’re likely to encounter in their everyday lives, these laws have to be built to accommodate all eventualities. This can lead to some strange interpretations and applications of statutes, as well as some interesting stand-alone policies. Some of these…
Each state is a little different in terms of the way it handles sales tax, and this includes the determination of whether or not shipping charges are taxable. The following is a state-by-state breakdown of the taxability of shipping, handling and any other charges associated with the delivery of taxable items shipped to the purchaser….
Since the enactment of most state sales tax laws in the middle of the 20th century, the economies in these states have grown and evolved considerably. It used to be that the sale of tangible goods from brick-and-mortar stores made up a bulk of the economic activity across the country, and so sales tax laws…
It’s July, and here in Florida, like many places, it’s HOT outside. Like, unbearably hot. It doesn’t take more than a few minutes outside before you start feeling thirsty. Try going for a bike ride or run, and about 5 minutes in, you’ll start actually fantasizing about a tall glass of ice cold H2O. Water…
It’s every online retailer’s nightmare: a dreaded audit or costly penalties and fines for erroneous sales tax reporting. And yet, the ever-changing landscape of sales tax regulations that affects ecommerce retailers means that errors in reporting are a real possibility for even the most conscientious of vendors. Is there a way retailers can protect themselves…
In most cases, a business needs to collect sales tax in the states in which they are located. This concept, called nexus, means that if the business has a physical presence in a state, that state can compel the business to collect sales tax from its customers. Nexus is pretty cut-and-dry when you’re thinking about…
Naturally, sales tax applies to products, and while rules may vary, they are fairly straightforward in terms of when it is required. What’s more challenging, however, is knowing when services are taxable. In the past, services typically did not incur sales tax, but as small businesses make headway into industries that were formally only controlled…