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Thread: Drop Ship out of State Wholesaler announces TAX for 10 states

  1. 09-01-2010, 09:14 PM #1
    MSD is offline Member
    Join Date
    Sep 2009
    Location
    EST
    Posts
    57

    Default Drop Ship out of State Wholesaler announces TAX for 10 states

    Have not sorted this out yet but a rather large supplier has announced they will no longer drop ship tax free into California and 10 other states.

    CALIFORNIA
    CONNECTICUT
    DC
    FLORIDA
    LOUISIANA
    MARYLAND
    MASSACHUSETTS
    MISSISSIPPI
    NEBRASKA
    RHODE ISLAND
    TENNESSEE

    Consumers normally are to declare tax and remit out of state purchases that are tax free. Now our supplier is asking for a Nexus certification or from this point forward state tax will be assessed against us. At 8.25% in California its a pretty big share. Some quick research online is scaring me. I suspect to voluntarily register I will subject myself to scrutiny and eventually have to pay tax. Maybe immediately, or worse retroactively.

    Amazon is fighting a similar situation because of affiliates in CA. My supplier has decided that either we register with the state to be exempt or they charge us starting tomorrow. My supplier is a billion dollar company with lots of lawyers and accountants and know what there doing.

    Thoughts.... anyone else seeing this start. Its a slippery slope and might mean we have to start charging tax in states we aren't anywhere near or in. Dropping the supplier probably not an option. Hopefully we are exempt but we don't have money for specialized legal advice if the state says maybe you better start charging it. The tax free internet advantage might be over in 10 states plus of course our state.

    Anyone care to comment or add an opinion.

    MDS
    Started V8 switched half way to V9 /// I need a V9 Forum

    AspDotNetStorefrontML 9.0.1.3/9.0.1.3 AspDotNetStorefront ML 8.0.1.2/8.0.1.2
  2. 11-01-2010, 12:01 PM #2
    mikecatalfamo is offline Junior Member
    Join Date
    Nov 2010
    Posts
    3

    Default Article: Taxes and E-Commerce Sales

    This taxation issue still seem to be around. I encourage you to have a read of my article and leave me a comment. Let me know how your business is managing this issue.

    http://www.ebridgeconnections.com/blog/?p=3395

    Regards,
    Mike
    http://www.ebridgeconnections.com
  3. 11-17-2010, 10:06 AM #3
    avsune is offline Member
    Join Date
    Feb 2008
    Posts
    68

    Default

    anyone set up to charge the customer tax in aspdnsf in states the drop shippers are charging tax in?
  4. 07-10-2011, 09:34 AM #4
    homepools is offline Junior Member
    Join Date
    Jul 2011
    Location
    Atlanta
    Posts
    3

    Default Tax

    Quote Originally Posted by MSD View Post
    Have not sorted this out yet but a rather large supplier has announced they will no longer drop ship tax free into California and 10 other states.

    CALIFORNIA
    CONNECTICUT
    DC
    FLORIDA
    LOUISIANA
    MARYLAND
    MASSACHUSETTS
    MISSISSIPPI
    NEBRASKA
    RHODE ISLAND
    TENNESSEE

    Consumers normally are to declare tax and remit out of state purchases that are tax free. Now our supplier is asking for a Nexus certification or from this point forward state tax will be assessed against us. At 8.25% in California its a pretty big share. Some quick research online is scaring me. I suspect to voluntarily register I will subject myself to scrutiny and eventually have to pay tax. Maybe immediately, or worse retroactively.

    Amazon is fighting a similar situation because of affiliates in CA. My supplier has decided that either we register with the state to be exempt or they charge us starting tomorrow. My supplier is a billion dollar company with lots of lawyers and accountants and know what there doing.

    Thoughts.... anyone else seeing this start. Its a slippery slope and might mean we have to start charging tax in states we aren't anywhere near or in. Dropping the supplier probably not an option. Hopefully we are exempt but we don't have money for specialized legal advice if the state says maybe you better start charging it. The tax free internet advantage might be over in 10 states plus of course our state.

    Anyone care to comment or add an opinion.

    MDS
    I have the same problem Did you find out more on this