Nationwide sales tax being charged online

Many of you in the U.S. have probably noticed that several of the larger online retailers are now suddenly charging sales tax to out-of-state buyers where they had not been before. This is apparently due to a Supreme Court ruling regarding internet sales and has caused most of the larger retailers such as MidwayUSA, Brownells, Natchez, etc… to start charging everyone sales tax on orders for ammo, or anything. The retailers are saying that Jan 1st 2019 was when they felt they needed to be in compliance “just in case” there is an issue, and basically they are just afraid of getting an IRS audit in which the auditor could look at all of the states which apply and deem them delinquent if they can’t prove having collected sales tax. This applies to those states which have a “Sales & Use tax” of a certain sort, which is at least half of them.

There is a handy list showing which states are affected:

I have noticed that not all websites are bothering to do this at all, such as TargetsportsUSA, or SGAmmo (good for them!), but an equivalent mid-size website like Outdoorlimited does, as of just recently. I am fortunate in having a retail license and resale certificate that I can usually forward this on to the retailer and have the tax nullified. I have also noticed that this is very inconsistent as of yet, with some websites collecting from every state regardless of their tax status, while other websites apply the tax only to those on the list above which require it. Most all of the smaller / older ammo & gun-oriented websites however, still collect nothing other than their own state’s tax, as was always the case.

Perhaps a note on the website directing customers to calculate their applicable tax amount and submit it themselves to their state is an option ;-)

Yeah, really- a disclaimer. For all I know, I am already agreeing to such a thing when I make purchases and click on the “agree to terms” option, which is fine by me.

“as was always the case”

No. Until recently is was very rare for a state to charge tax on interstate trade. You would only see it where states had a reciprocal agreement.

I meant that websites had usually always charged sales tax on their own in-state sales - residents from the same state as where the seller was physically that is.

Most states allow sales from $10,000.00 to $100,000.00 or more shipped into their state before you have to collect sales tax for their state.
Below is a link, after you go to the link scroll down to see sales amount for each state before you have to collect.



Are, Taxes, we love them don’t we :-)

There was , besides the reciprocity rule [a company I worked for in the mid 1990s’ charged tax when they sold to people in several states, then they declared that to the state in taxed sales], there is also the collection of sales tax across state lines if a company had a store located in the state in which you live.
For instance, when I bought from Cabelas online, they charged me sales tax because they have a store in my state.
So, in reality this is nothing new, it is just that the retailers had no reason to abide by a spate of inconsistant tax scales, or did not want to incure the extra expence of updating their POS software untill it became a legal necessity…
Some companies have “included” sales tax within their pricing structure for years, awaiting the inecitable tax grabbers.

Yes if you have a business localed in a state you have to abide by that states sales tax law, always has been that state law in Maine…
The U.S. Congress passed a Federal law and uphelded in court, that you now have to abide and collect sales tax if you ship into other states even if you are not in that state IF;. Again, as stated above it does not effect the small guys, only businesses shipping more then $10,000.00 to $100,000.00 or more a year in to each state, have to collect sales tax. That is now Federal Law not State Law.
Many companies are charging sales tax , but how many will keep the taxes and not pay the states if they do less then the law states in each state ?

My experience has been with one state honouring another state tax laws via receiprocity laws in that state. I have enough trouble figuring out my OWN state tax, so this is a best guess:
God only knows how the federal law will- or wil not- work. Does it mean if my state tax is .06, and the state I am buying from is 2.6, do I get charged MY tax or THEIR tax as a buyer?
What I see is people figuring out which on-line seller will get you the lowest tax rate, if it is a high doller item, otherwise it probably will not matter to the average buyer… and, as a buyer I probably will not care much.
Ebay is going to start charging tax on all ebay sales, but tax in the stare the thing is sold, or tax in the state the thing is bought, I am unsure.
Confusion reigns, once again.

Sales tax is always the amount that goes to the state that the product is shipping too…
If dealers have a State Re-Sell certificate, you can e-mail a copy to a supplier and they will not charge you sales tax on items you are buying to resell.
My beef is a lot of companies will start charging use sales take and then pocket it, and not pay your state the taxes, as it will be almost impossible to police it, from not state to another.