Tax Rules Blog Posts

2018 Sales Tax Holidays by State

March 27, 2018

While sales tax holidays are a nice treat for consumers, they can make the arduous task of keeping track of sales tax for your ecommerce business even more of a headache. Fortunately, they only come around a few times a year, but of course, every state does things a little differently. That means that you need to know whether you’re required to participate or only strongly encouraged, whether the tax holiday applies to local taxes or only the state sales tax, and what items specifically are included. There are currently 15 states with at least one sales tax holiday scheduled… Read More

Could a Carbon Tax Save the Planet?

February 5, 2018

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 never popular, but a more complete understanding of how a carbon tax would work can help make clear the real arguments for and against it. This type of tax is also part of a trend towards taxing unhealthy or luxury items, such as the soda… Read More

eBay Sales Tax Fraud

January 24, 2018

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 to collect and remit sales tax on purchases made by customers in that state. These determinations must be made for each state, and for any state you do have to collect sales tax in, you first have to register for and receive a permit to… Read More

Strange State Laws (Concerning Sales Tax and Other Things)

October 24, 2017

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 reflect the interests of special groups, but many are just the result of a common-sense idea that was extended to an absurd degree. Groceries vs Prepared Foods One source of confusion for states involves determining exactly what the difference is between groceries and prepared foods…. Read More

Should I Charge Sales Tax on Shipping Charges in my E-commerce Store?

August 15, 2017

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. It should be noted that the following regulations apply only to shipments of goods that are already subject to sales tax under the laws of the state in question. No state requires sales tax to be collected on shipping charges associated with the delivery of… Read More