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Promotional Products Home Frequently Asked Questions Will I Be Charged Sales Tax?

Related Questions

In short, the answer to that question is "yes." As of January 2019, a new law is in place that requires sales tax to be collected for online orders in all 50 states. This isn't just the promotional products industry! You'll see this new law in effect for all online retail stores and every other site where you can make a purchase.

Origin + Location = Sales Tax Amount

Sales tax is determined based on where your order is being shipped from and where it's being delivered. For example, a package traveling from Hawaii to New York will have a different tax rate than a package making its way to Colorado from Ohio.

However, it's not as simple as 1 + 1 = 2. Each state also has individual counties, cities, and townships that mandate their own sales tax requirements. In other words, you might be shipping that package to Colorado, but the amount could be different if you're shipping to Adams County as opposed to Delta.

Long story short, the location where the item is being shipped from and the intended delivery address are what determine how much sales tax you'll be charged. Keep this in mind when you place an order.

Changes May Occur

It's important to keep in mind that nothing is set in stone. Local and sales tax laws are always changing, which means things might be different in a year or even next month. If the law changes, you might see a different amount in sales tax charges reflected on your final invoice.

To see this in action, let's pretend you're ordering 100 Round Stress Relievers on January 29th and need them shipped from Illinois to Orange County, California. The current law (for the sake of the example) determines that you'll be paying a little over $3 in sales tax*.

Tax

Now let's say a new sales tax law goes in effect for Orange County zip codes in February. Since your order is likely going to be arriving during that time, you'll be required to pay the amount determined by the new law. In this pretend situation, you're going to be paying over $2 more in sales tax*.

Invoice example

It might seem like a lot to wrap your head around, but don't worry! We will always let you know if there are any price changes before we hit you with any surprises on your invoice.

*Prices are not accurate in these images and are only being used for the sake of the example.

Are You Tax-Exempt?

Some organizations are considered tax-exempt and don't have to worry about additional sales tax charges. If you're a tax-exempt organization, simply provide a valid and complete State Tax Exemption certificate and any sales tax will be waived. No matter where we're shipping to in the United States, sales tax is not applied to the shipping portion of your order.

No dollars

If you want to learn more, be sure to visit our blog post about the sales tax law that went into effect January 2019.

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If you have any questions about your tax amount along the way, feel free to ask your dedicated sales rep. We're here to make sure you're never in the dark about how much you're paying.

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