Sales Tax Blog
Price vs. Value: Communicating Value to Your Online Customers
Warren Buffet is quoted as saying, "Price is what you pay. Value is what you get." Retailers need to understand the difference between price and value – and ecommerce retailers need to know how to communicate that to their customers without the benefit of face-to-face interaction. How does value affect a purchase? Consumers may think they make purchases strictly based on their needs or desires as well as their budgets, but retailers should understand that the psychology of “seeing value” comes into play as well. A prospective buyer will spend more if they believe that the product they are purchasing… Read More
South Dakota’s New Sales Tax Law
For nearly two decades, the question of whether to collect sales tax on Internet-based purchases has been a point of concern at the state level. Especially in cash-strapped states, where tax revenue has declined as the percentage of retail purchases online has increased, many have wondered what it will take before we have a standard for Internet sales taxes. South Dakota recently passed a new sales tax law – Senate Bill 106 – designed to push the conversation forward, intentionally provoking the 1992 Supreme Court decision in Quill v. North Dakota regarding the constitutional nature of sales tax nexus. This… Read More
5 Reasons You Need Sales Tax Automation
Wondering if you really need sales tax automation? Not sure what I’m talking about? Read our introduction to sales tax automation. It’s true that not every business needs sales tax automation, if they have nexus in a single state that either doesn’t have sales tax, or has a single state-wide rate. (Although, even a business whose tax calculations are simple can benefit from the streamlined bookkeeping, reporting, and payment options provided by sales tax automation.) But businesses that have nexus in multiple states, or who operate in a state with destination-based sourcing and multiple rates, may find that the cost… Read More