On June 21, 2018, the U.S. Supreme Court’s “South Dakota v. Wayfair” decision upheld the right of South Dakota to require remote sellers to collect and remit state sales tax. The decision established the right for states to define economic thresholds for compliance of state collection requirements. Corvette Central meets these economic thresholds for several states that have passed laws/regulations and is now required by state law to collect and remit sales tax on purchases made by individuals in those states.
All states that have a sales tax also have a use tax. Consumers who made purchases without the collection of sales tax are required by states to file a consumer use tax. The burden for this collection has now been placed on the merchants. This is not a new tax – only a change in the way the tax is collected.
The monies are collected and remitted to the state and/or locality based on the address the product was delivered to.
If you purchase from other companies who are not charging sales tax, there can be several reasons for this: Companies may fall under the small seller exemption and do not meet the economic thresholds established by each individual state; Companies are not adhering to the state tax laws and/or guidelines passed by individual states. When this is the case, individuals are required to submit “Use Tax” for the purchase.
In order to be exempt from paying sales tax on purchases, from us, we must have the appropriate state Sales Tax Exemption Certificate on file. Please email your certificate to Accounting@corvettecentral.com.