New Tax Rules

Over the past few months I’ve seen a flurry of discussions in various message boards about the recent ‘South Dakota vs. Wayfair’ ruling and how it has impacted online shopping.  In a nutshell, in June 2018 the US Supreme Court ruled that states can collect tax on sales made through retailers that don’t have a physical presence in that state.  Prior to this, buyers only had to pay sales tax to mail-order and online retailers if they had a physical store in the buyer’s state.  This made online buying so attractive – you can get a good price and not have to pay tax in exchange for paying a shipping cost.  State governments were feeling the pinch from declining tax revenues and apparently South Dakota just got fed up and went after 4 of the largest online retailers, eventually taking the case with Wayfair to the Supreme Court.  Once the ruling was handed down, about 20 other states followed suit and now all the advantages of buying online is pretty much gone for many people.

So how does this impact RSG?  Well, when shopping platforms like Ebay and Reverb started collecting taxes on behalf of these states, I started receiving more messages from potential customers asking about discounts or offline sales to offset the added cost of taxes.  I would simply refer them to this site, since I have only ever charged for tax on orders shipped to Washington state.  There’s a few conditions in the ruling that I can work within so that I don’t have to collect taxes on sales to other states, so it’s business as usual.

So, even with this new ruling, I will continue to only collect taxes for orders shipped to WA.  Spread the word!