Blog

Custom Tool Supply
August 31st, 2018

Due to the Supreme Court ruling on the South Dakota vs Wayfair case, Custom Tool Supply will need to start collecting sales tax in the states where we meet their requirements.

As we start adding these states we will update this page.  Also, when we add a state we will let you know the effective date and what taxes we are collecting.  Some of the states have come out with a flat rate to make collecting and reporting easier, other states want us to collect everything. 

When we add a state here we will also ask for your exemption/reseller license.  If we do not receive it by the effective date you will be charged the tax(es).  There will be NO going back adjusting past invoices.


COLORADO

Effective August 27th, besides charging sales tax on the product(s) you purchase, taxes will also be charged on the freight portion of your order at the same rate.

 

EFFECTIVE SEPTEMBER 17th WE WILL START CHARGING SALES TAX
IN THE FOLLOWING STATES

Starting September 17th the following sales taxes will be collected:

Oklahoma – The state rate of 4.5% plus any local tax will be collected
Pennsylvania – The state rate of 6% plus any local tax will be collected.  Also the freight on the invoice is taxable as well.

We are not going to collect for Rhode Island at this time.  We do not have enough sales to warrant registering with the state.

EFFECTIVE OCTOBER 1ST WE WILL START CHARGING SALES TAX
IN THE FOLLOWING STATES

Alabama – The state is charging a flat rate of 8%.
Illinois – The state rate is 6.25% and freight is taxable as well.
Indiana – The state rate is 7% and freight is taxable as well.
Kentucky – The state rate is 6% and freight is taxable as well.
Maryland – The state rate is 6%.
Michigan – The state rate is 6% and freight is taxable as well.
Minnesota – The state rate is 6.875% plus any local tax will be collected.  The freight is taxable as well.
New Jersey – The state rate is 6.625% and freight is taxable as well.
Washington – The state rate is 6.5% plus any local tax will be collected.  The freight is taxable as well.

As a reminder if you have an exemption/resale certificate or whatever form your state issues that shows you are exempt from paying sales tax, please send it to salestax@customtoolsupply.com as soon as possible.  You may also fax it to 303-576-6489.  Please make sure that the document you send over is current.  If we do not receive it by the effective date or your first invoice after the effective date, you will be charged the tax (es).  There will be NO going back adjusting past invoices.

If you have any questions, you can either send an email to the above email address or call Celeste at 303-576-6335 or 800-784-2163.