Sales Tax

Until recently, online retailers like Online Outboards were required to charge state retail sales taxes only on purchases from customers residing in states where the retailers have a physical presence – a brick and mortar store. For Online Outboards, that state was Tennessee.

However, on June 21, 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc. that states may require a remote seller with “economic and virtual contacts” in the state to collect and remit sales tax, even if the company does not have a physical presence in that state.

New Legislation

As a result of the Wayfair ruling, many states have now adopted new, “economic presence nexus” legislation that requires online retailers to collect and remit sales taxes under certain conditions. These laws and the thresholds that trigger them differ from state to state, and it is the responsibility of each online retailer to be aware of these requirements and to monitor whether or when they must charge and remit sales taxes to the affected states.

Thresholds include:

  • Amount of revenue received
  • Number of transactions
  • The date these thresholds were met (which determines when an online retailer must begin to collect sales taxes to subsequently remit to the state)

States for Which Online Outboards Currently Must Charge Sales Tax

It’s important to note that this list will continue to evolve as additional states begin to enact economic presence nexus legislation and as Online Outboards activity reaches certain thresholds.

Below is the list of states for which Online Outboards currently is required to collect sales tax on online purchases:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Utah
  • Virginia
  • Washington
  • Wisconsin 

States for Which Online Outboards DOES NOT Need to Charge Sales Tax

Currently, Online Outboards is NOT required to charge retail sales tax on purchases made from the following states. If you live in one of these states, your Online Outboards purchase will not include sales tax:

  • Alaska
  • Connecticut
  • Delaware
  • District of Columbia
  • Hawaii
  • Iowa
  • Kansas
  • Missouri
  • Montana
  • Nebraska
  • New Hampshire
  • New Mexico
  • North Dakota
  • Oregon
  • Rhode Island
  • South Dakota
  • Texas
  • Vermont
  • West Virginia
  • Wyoming

You May Still Be Required to Pay Sales Taxes Even if We Aren’t Required to Collect Them

Just because your state is not listed above does not necessarily mean that you do not need to pay tax on your Online Outboards purchase.

Some states that do not have economic nexus laws in place do require their residents to pay sales, use, excise or other taxes on online purchases directly to their state and/or local municipality. When making a purchase from Online Outboards, it is your responsibility to verify and follow all applicable tax laws in your area.