Drop Ship out of State Wholesaler announces TAX for 10 states
Have not sorted this out yet but a rather large supplier has announced they will no longer drop ship tax free into California and 10 other states.
Consumers normally are to declare tax and remit out of state purchases that are tax free. Now our supplier is asking for a Nexus certification or from this point forward state tax will be assessed against us. At 8.25% in California its a pretty big share. Some quick research online is scaring me. I suspect to voluntarily register I will subject myself to scrutiny and eventually have to pay tax. Maybe immediately, or worse retroactively.
Amazon is fighting a similar situation because of affiliates in CA. My supplier has decided that either we register with the state to be exempt or they charge us starting tomorrow. My supplier is a billion dollar company with lots of lawyers and accountants and know what there doing.
Thoughts.... anyone else seeing this start. Its a slippery slope and might mean we have to start charging tax in states we aren't anywhere near or in. Dropping the supplier probably not an option. Hopefully we are exempt but we don't have money for specialized legal advice if the state says maybe you better start charging it. The tax free internet advantage might be over in 10 states plus of course our state.
Anyone care to comment or add an opinion.
Started V8 switched half way to V9 /// I need a V9 Forum
AspDotNetStorefrontML 126.96.36.199/188.8.131.52 AspDotNetStorefront ML 184.108.40.206/220.127.116.11