We don't like taxes any more than anyone else. Unfortunately for many, last year's South Dakota v. Wayfair decision by the United States Supreme Court meant that more companies are going to have to charge state and local sales taxes in more jurisdictions. A number of factors have made us come to what we consider an unfortunate but necessary decision to begin collecting CA sales tax. Here's why we're doing it:
- We already had a number of suppliers that charged us sales tax to ship to various jurisdictions, and we simply ate the cost. The number doing so in California are increasing rapidly.
- Many institutional customers' require that they can show they are paying sales tax in order to avoid having to pay it themselves. If we don't collect it, and therefore don't bill it, tax is being double-paid. The customer is still liable to pay it, and additionally we're being charged it by our suppliers.
- We're right on the cusp of being legally liable to do so anyway, just based on our own sales volume. While here in New Hampshire we do have a bit of that "live free" mentality, for business purposes it's best to remain above board.
Here in New Hampshire we have no sales tax, so we're still figuring all this stuff out ourselves. We apologize to any of our customers in California who will be disappointed by the new laws. We liked it better when "tax nexus" was determined based on physical presence but hey - we don't make the rules.
As always, if you have any questions about past, present, or future business with us, just drop us a line.