The taxes, they are a-changin'
What's that? Sales tax on the Internet, you say?
Unfortunately, very soon we will have to say that. Due to a recent Supreme Court ruling, the internet is no longer a sales tax-free zone. Actually, it never was. It's just that until this ruling, anyone in states that levy a sales tax was responsible for reaching out to their state and paying the sales tax directly unless we had some form of physical presence in the state (for example, we've been collecting California state sales tax for a while now due to the presence of California based sales reps).
After this ruling takes effect, we at Screaming Circuits will be responsible for collecting the taxes regardless of whether we have a physical presence. And, it's not just for the Internet. This applies to any business transaction with product shipping to destinations in the USA. None of this applies if your boards are being shipped to destinations outside of the USA.
The good news is that if you are exempt from paying sales tax, you can provide an exemption certificate from your state(s). Send a copy of it to us at email@example.com. Use the email subject line: "Tax Exemption Certificate."
We need the certificate. We can't just take your word for it.
The short of it:
- Starting very soon, Screaming Circuits will be collecting sales tax for all deliveries to states in which we are registered to collect sales tax.
- If you are exempt from paying sales tax, please send us a copy of your tax exemption certificate(s) for any states that you have us ship product to.
- It is based on where we ship the boards, not necessarily where you live.
You can read all 40 pages of the Supreme Court ruling here: https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
It's kind of complicated. The sales tax exemption and charge is based on where the boards are shipped. For example, if you live in Seattle, Washington and have the assembled boards delivered to yourself, you will need to have an exemption certificate from Washington state or pay sales tax at Seattle, Washington rates. (The rate calculation goes down to the zip code in many cases) If you live anywhere else, like Oregon, and have your boards shipped to Seattle, Washington, you will pay Seattle tax or need a Washington exemption certificate. If you ship to multiple states, you may need an exemption certificate for each state.
Oregon, Montana, Alaska, New Hampshire, and Delaware do not currently have a state tax so if your boards are being shipped into one of those states, you are in the sales-tax clear. No tax will be collected and no exemption certificate will be needed for shipments into those states. If anything changes with these sates, we will let you know.
This court ruling covers more than just the Internet. While most of Screaming Circuits' business is conducted over our website, a good portion of it takes place in the realm of phones and email. We also conduct some manufacturing under our parent company brand Milwaukee Electronics. These tax changes cover all of that business as well.
We don't have an exact implementation schedule yet, but it will happen within the next few months. We are collecting the exemption certificates now, so if you have or can get one, please do so as soon as possible and email it to us at the address listed above.