[arrl-odv:27971] Charging Sales Tax

Good morning - As some of you are already aware, on June 21, 2018 when the Supreme Court made their ruling in favor of South Dakota in the case of South Dakota v. Wayfair, Inc. it changed states ability to require the collection of sales tax based on an economic definition of nexus rather than just a physical presence nexus standard. As an organization that ships products to all 50 states, this ruling is significant for ARRL. While not all states have legislation on their books yet, many do and most are working towards passing such legislation. There are currently approximately 20 states that have effective dates for collection starting as of 1/1/2019 or earlier. In response to this new ruling, ARRL must now start charging sales tax on orders in these states and counties as a matter of law. As we become registered in each of these states and update our systems to handle the applicable taxes, customers will begin to see sales tax charged on their orders based on where the order is shipped. This list will continue to grow regularly until we are fully compliant with all states. We are not the only business this affects and many businesses are scrambling and struggling to comply with this new ruling. It appears, based on our research, ARRL will be ahead of the curve on charging sales tax to customers. So, if you are approached by any members that express concern or displeasure over this new requirement, please help them understand that ARRL is only doing what we are now required to do by law. Because the list of states involved is constantly changing, it would be pointless to list them here as the list wouldn't be complete. We are also aware that adapting our e-store for sales tax is not the only issue. All of our direct mail promotional order forms will also need to be altered to accommodate the new requirements and we are also working on this. As always, if you have any questions I will be happy to address them. Diane Middleton, W2DLM Chief Financial Officer ARRL, the national association for Amateur Radio® 225 Main Street Newington, CT 06111 (860) 594-0225
participants (1)
-
Middleton, Diane, W2DLM (CFO)