STATE SALES TAX INFORMATION

If you are buying products online or calling vendors out of state, you now may need to pay taxes on those purchases. State sales tax depends on the state to which your order is being shipped and it may have enacted laws requiring the collection of sales taxes by online sellers.

In June 2018, the United States Supreme Court fundamentally changed the rules for collection of sales taxes by internet-based retailers through its decision in the case of South Dakota v. Wayfair Inc. Prior Supreme Court cases had prohibited states from requiring a business to collect sales tax unless the business had a physical presence or nexus in the state. In the Wayfair case, the Court changed course and held that individual states now can require online sellers to collect state sales tax on their sales regardless of whether they have a physical nexus to the state. States had argued they were losing significant tax revenue and that local retailers were at a competitive disadvantage compared with out-of-state internet sellers. Under the old law, the burden was on the customer rather than the seller to pay the relevant tax as a “use” tax rather than sales tax. As a result, customers often simply did not pay use tax to their state of residence.

In response, most states either have enacted new laws to impose and collect sales taxes on internet sales or are considering doing so. These laws often refer to online sellers as “remote sellers.” In most cases, if a remote seller has either a minimum number of sales transactions with customers in the state or a minimum dollar amount of sales to customers in the state, the remote seller must collect and pay state sales tax. The dates on which remote sellers must start collecting sales tax varies from state to state. Under some laws, remote sellers may be required to collect sales taxes retroactively.

Following are states for which Davis Manufacturing currently collects state sales tax on internet purchases:

TAX-EXEMPT ORDERS: Tax-exempt status is typically available for qualifying businesses, governments, non-profit entities, and educational institutions. To qualify for tax-exemption status, you must have received a determination of federal tax-exempt status with a Federal Employer Identification Number (FEIN) through your state.

To receive tax-exemption status on your Davis Manufacturing account, please submit a copy of your completed valid Tax Exempt Certificate. Please email a copy of your certificate to Tax@DavisMfg.com or send a email to that address asking for link to fill one out online via CertExpress. Please include your Customer ID (that can be found on your invoice or packing slip).  You’ll need to maintain a current state Tax Exempt Certificate in accordance with state laws. If you need to download a MultiState Sales and Use Tax form, you can do that here.  Once you submit your Tax Exempt Certificate, we’ll review the documentation provided within 48 hours. If we need additional information or documentation in order to process your exemption document, our customer-service team will contact you.