Taxes

[agarvey]

So, I know there is customization out there that can do this, but we can't afford the price tag so I was hoping there was an easier, cheaper solution out there. We have many different products, some of them we cannot tax in the state in which we conduct business. The trouble is that the only option we have on a per product basis is to make it taxable or not taxable. All of our products are taxable in all states except the certain ones and they are only not taxable in one state.

So, my question is this. Is there a module out there that can help me or is there a way to tweak the code so that if the taxable option is not checked it only applies this to the one state that we need?

Thanks for any help or suggestions.

[Rick Wilson]

Re: Taxes

You're collecting tax for all 50 states?

[SunCam]

Re: Taxes

This seems very upside down to me. The usual rule is to collect taxes only for deliveries to an address in your home state or a state where you have a physical store and then only on goods that are taxable.

[Siamese-Dream.Com]

Re: Taxes

...also, some states don't have sales tax.

And if you were going to collect sales tax for our home state (California), I think there are about 40 different tax jurisdictions, so the tax rate would vary depending on what address you sent it to.

[agarvey]

Re: Taxes

From what I understand from my boss, we are not supposed to tax certain goods (disposable goods, in our case) in the state we reside in (MD). However, we drop ship these goods, so our drop shippers charge taxes on them. We would like to be able to not charge MD sales tax, but charge sales tax for other states (the rate that Miva calculates is fine)--is this possible or has it been done before? It would be nice if we could add another box at the bottom screen where you add a product and click Not Taxable in Maryland. Same as the Taxable checkbox now. If that isn't possible, can we change the Taxable checkbox to mean taxable in all states; if it is not checked, not taxable in MD only.

Thanks.

[jsdva]

Re: Taxes

California allows 8.25% (current rate) across the board for e-commerce, because of the multitude of tax rates in the state.

What you might need to do is dive further into the MD sales tax issue with your state taxing authority. There may be an alternative like CA has for e-commerce, or particularly the goods you are concerned about, but you would have to contact them for the latest info.

[Bruce - PhosphorMedia]

Re: Taxes

always good to contact local taxing authorities as tax, though as certain as death, are also more mysterious.

that being said, for most states and circumstances, it matters not where your drop-shippers are as for determining a nexus, but rather where you are located. However, this does not hold true IF your company is an "agent" of the drop-shipper, and not its own entity.

[Siamese-Dream.Com]

Re: Taxes

California allows 8.25% (current rate) across the board for e-commerce, because of the multitude of tax rates in the state.

Jamie: do you have a link to where you read this???

Every time I contact the Board of Equalization (BOE) they say one of two things.
Either:

1) Collect the sales tax of the destination delivery IF YOU CAN, but if not, then collect our LOCAL tax rate (9.5%)

or

2) Collect our local sales tax (9.5%)

I call them fairly regularly just to try and CMA, and I have never heard the 8.25% from any of the people at the BOE.

[jsdva]

Re: Taxes

Jamie: do you have a link to where you read this???
I call them fairly regularly just to try and CMA, and I have never heard the 8.25% from any of the people at the BOE.

Sorry Mark, this information was not found on the Web, but through a phone call to the BOE, specifically requesting the sales tax for e-commerce only. The rate given may have been the result of the way the question was asked, in this case specifically for e-commerce and not for a physical store. At any rate, it was assured that the client was legal in using the 8.25% rate given to them by the BOE for the e-commerce site.

[Siamese-Dream.Com]

Re: Taxes

thank you, Jamie:

I will call again after Christmas and see what they say.

[harmonicalessons]

Re: Taxes

Mark,

Did you ever get any new info or resolution on this issue and what software module are you using or recommend?

Thanks,
Dave

[harmonicalessons]

Re: Taxes

Bruce,

Can you explain what this means:

"However, this does not hold true IF your company is an "agent" of the drop-shipper, and not its own entity."

Any recommendations for state tax modules?

Thanks,
Dave

[Siamese-Dream.Com]

Re: Taxes

Mark,

Did you ever get any new info or resolution on this issue and what software module are you using or recommend?

i still just collect our local tax rate no matter where I ship in California. Am just using the built in miva sales tax module.

[harmonicalessons]

Re: Taxes

i still just collect our local tax rate no matter where I ship in California. Am just using the built in miva sales tax module.

Mark,

Cool, the built-in module does seem fine. By the way, the rate is going down about 1% in most CAL cities and counties tomorrow.
--

A previous poster said, "Cal allows 8.25% (current rate) across the board for e-commerce, because of the multitude of tax rates in the state."

Did you ever happen to check into that?

Someone said in a different thread that the rate is based on billing location and not shipping, but that doesn't seem right. Are you going by the Ship To address?

Thanks again,
Dave

[Bruce - PhosphorMedia]

Re: Taxes

Bruce,

Can you explain what this means:

"However, this does not hold true IF your company is an "agent" of the drop-shipper, and not its own entity."

Any recommendations for state tax modules?

Thanks,
Dave

Agent as in "independent sales agent for drop-shipper". For example, you sell the goods of the drop-shipper in return for a commission or percentage of sales. If you purchase items from the drop-shipper, and they merely provide "shipping" as part of the purchase price, you typically don't have to tax in the shipper's state.

Netblazon.com is the only one that has an affordable tax module that i know of.