A few states recently introduced laws making it possible for them to require a seller to collect and remit sales tax on sales made into that state. These laws were driven by the U.S. Supreme Court’s ruling in the South Dakota v. Wayfair, Inc. case from 2018. Nonprofit mailers will potentially be impacted by these laws and could be charged sales tax for mail delivered into certain states.
These new state sales tax laws are complex, vary by state, and differ considerably in terms of the granting of exemptions for nonprofits. While your legal and tax departments are likely also researching the matter, the team at Production Solutions is working diligently to simplify the information and assess the potential impact, if any, to your budget. We’re also exploring if there are additional exemption forms that can be completed to avoid being charged for sales tax in the applicable states.