Recently, we’ve had to make some tough decisions. One of them relates to the way we handle taxes on all of our orders. We are now tasked with charging users taxes based on the respective state that they’re sending mail to. So, let’s say you’re located in Florida but you’re sending mail to a recipient in California. If that’s the case, you’ll be charged based on California’s tax rate. It’s more than fair to wonder why this change is taking place, so continue reading for the insights you’re seeking.
The Wayfair Act
The decision for Direct Mail Manager to begin charging state sales tax can be traced back to 2018. That’s when a Supreme Court ruling in the South Dakota v. Wayfair case mandated that businesses making more than 200 transactions in a state where they don’t maintain a physical presence begin collecting sales tax. Considering that it’s been a few years since the law has taken effect, we needed to begin charging for sales taxes once we were able to do so. By collecting sales taxes, we eliminate the risk of leaving our valued users financially liable for unpaid taxes.
How Much Will the Increase Be?
Each state that charges sales tax has its own rate that usually ranges somewhere between 5%-7%. The sales tax rate varies from state to state. When it comes to the postage, that will be taxed based on the location of the ship-to state. Any additional taxes will be charged based on the State the user resides in.
When Will the Changes Take Place?
All quotes sent out after December 1, 2022 will have sales tax included. Considering how short notice this is, we’d like to apologize for any inconvenience this may cause. For any questions regarding how your taxes are charged, feel free to contact us today.