Blog

Custom Tool Supply
October 27th, 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.


UPCOMING STATES

We will start collecting sales tax in the following states in September.

Oklahoma
Pennsylvania
Rhode Island

We will advise when the start dates will be and other important information, as these dates get closer.

If you have an exemption certificate, reseller license or whatever form your state uses 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 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.
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.
SEPTEMBER 24th UPDATE

We will not be collecting sales tax for Minnesota.  They allow us to back out sales to resellers.  We no longer meet the requirements to be licensed there at this time.


SEPTEMBER 27th UPDATE

We will not be collecting sales tax for Maryland at this time.  .  We don’t start looking at the threshold requirements until October 1, 2018 and when you meet one of the thresholds, then you get licensed.  They do not have you look at past sales.

We will let you know when this happens.


SEPTEMBER 28th UPDATE

Alabama requires us to notify you of the following:
Seller has collected the simplified sellers use tax on this transaction(s) delivered into Alabama and the tax will be remitted on the customer’s behalf to the Alabama Department of Revenue.
Seller’s program account number is SSU- R010188423 this is for Custom Tool Supply
For those of you that purchase through H&S MANAGEMENT we are switching to the simplified sellers use tax effective October 1st.  Their account number is SSU-R010154492.

SEPTEMBER 28th UPDATE

We will not be collecting sales tax for New Jersey at this time.  We don’t start looking at the threshold requirements until November 1, 2018 and when you meet one of the thresholds, then you get licensed.  They do not have you look at past sales.

We will let you know when this happens.

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

Minnesota – The state rate is 6.875% plus any local tax.  The freight is taxable as well.  This one is back on because a person at the state told me the wrong information.
New Jersey – The state rate is 6.625% and freight is taxable as well.  They pushed their date back to November 1st.
North Carolina – The state rate is 4.75% plus any local tax.  The freight is taxable also.
Nevada – The state rate is 4.6% plus any local tax.
South Carolina - The state rate is 6% plus any local tax.  The freight is taxable also.
Wisconsin – The state rate is 5% plus any local tax.  The freight is taxable also.

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.