Sales Tax Requirements
Determining Applicable Sales Tax
If an item is in your cart in the state to which the order is shipped, we'll determine the tax on the "total selling price" of each item. In accordance with state tax laws, the "total selling price" of an item generally includes shipping and handling charges for the items, item-level discounts, and an allocation of order-level shipping and handling charges and order-level discounts.
The amount of tax charged on your order depends on many factors including the type of item purchased, and the destination of the shipment. Factors can change between the time you place an order and the time of credit card charge authorization, which could affect the calculation of sales taxes. The amount appearing on your order as Estimated Tax may differ from the sales taxes ultimately charged.
The tax applied to your order will generally be the combined state and local rate for the address where your order was shipped. Therefore, the tax rate applied to an order going to your house may be different than the tax rate for the very same item(s) going to your mom's house, for example.
Orders Subject to Sales Tax
Items sold by Mass Apparel that are shipped to the following states are subject to tax:
- New Jersey
- New York
No sales tax is charged when purchasing gift cards; however, items paid for with gift cards may be subject to tax.
Internet Tax Freedom Act
Companies selling products online have to meet the same sales tax collection requirements as any other retailers. Remote sellers (including Internet retailers and catalog companies) are generally required to collect taxes where they have a physical selling presence. If they do not have physical selling presence, they're not required to collect sales taxes.
The Internet Tax Freedom Act (ITFA) has been renewed through November 1, 2014.
The ITFA was primarily intended to prevent state and local governments from imposing new or discriminatory taxes on online transactions and on Internet access. However the name of the Act, ITFA does not prevent state and local governments from imposing existing sales tax collection requirements on companies selling online.
State Reporting and Use Tax
People buying from Mass Apparel and shipping to Colorado, Oklahoma, South Dakota, Tennessee, or Vermont can learn more about use tax reporting obligations below.
Individual State Requirements
We don't collect sales or use taxes in all states! For states imposing sales or use taxes, your purchase is subject to use tax unless it's specifically exempt from taxation. Your purchase isn't exempt just because its made online or by other remote means. Many states require purchasers to file a sales/use tax return at the end of the year reporting all of the taxable purchases that were not taxed and to pay tax on those purchases. Details of how to file these returns may be found at the websites of your respective taxing authorities.
Colorado HB 1193, enacted in February 2010, requires online retailers to provide a detailed purchase report to customers with more than $500 of annual Colorado purchases by January 31 and to provide a summary purchase report with the total amount of each customer's annual Colorado purchases to the Colorado Department of Revenue by March 31. This law is currently the subject of a legal challenge brought by the Direct Marketing Association and others. In the meantime, the U.S. District Court has suspended enactment of the law while the legal challenge proceeds.
Tax may be reported and paid on the Oklahoma individual income tax return [Form 511] or by filing a consumer use tax return [Form 21-1]. The referenced forms and corresponding instructions are available on the Oklahoma Tax Commission website. We're required to provide the notice above for Oklahoma purchases based on Oklahoma law (HB 2359) enacted in June 2010.
South Carolina customers may owe use tax on purchases made from Mass Apparel. Payment and reporting information can be found on the South Carolina Department of Revenue's Website. S.C. Code Ann. § 12-36-2691(E)(3) requires us to provide South Carolina customers a notification of the total sale price amount for purchases made from Mass Apparel .
Purchases shipped to Tennessee may be subject to Tennessee Use Tax (T.C.A. § 67-6-210) unless an exemption exists under Tennessee law. A sale is not exempt under Tennessee law because it's made through the Internet. Payments of applicable Tennessee use tax may be made through the Tennessee Department of Revenue's Website.
Tax may be reported and paid on the Vermont use tax form. The use tax form and corresponding instructions are available on the Vermont department of taxes website. We are required to provide the notice above for Vermont purchases based on Vermont law (H 436) enacted in May 2011.