State Tax on Order - Meguiar's Store

[KTruck]

Hi:

A little surprised that the new order system is adding state tax to an order.

Is this correct?

Regards,

KTruck

Edit: I live in Virginia, was not added on other orders.

[Mike Phillips]

I don't really have much to do with the ordering and shipping end of the business but I will forward the link to this thread to CC.

[Mike Phillips]

Here's the skinny,

Each state has regulations/statutes that CAN require us to collect sales tax for the state. We have found that in the past we have not been in compliance with all states regulations. When we have a Meguiar's Representative living in a state, it means we are considered to have established NEXIS in that state. What that means is, in those states, we are looked at as if we have our full operation in that state, therefore we're required to collect sales tax.

Many other online (and call center) operations that do not charge sales tax are likely doing so because they have not established NEXIS in the given state or they are choosing not to comply with the law.


Does that make sense?

[Tom MacDonald]

The way it works is if we have a Meguiar's representative that lives in that state, we must charge sales tax if the laws apply for that state. Unfortunatley not our rule, uncle sams....

[inthedetails]

The man is keeping us down!

[travisdecpn]

That almost sounds more like a "use" tax than sales tax. Same thing happens when you buy a vehicle out of state, your home state still collects tax on it when you have to register it.