The Motley Fool is required to collect sales tax for orders placed by residents of certain states in which we do business.  Below are a few FAQs that hopefully answers some questions you may have on the topic.


Q: For what states do you collect sales tax? 

We collect state and local sales tax for orders placed by residents of state-administered local jurisdictions in Colorado (the cities of Broomfield and Lakewood), and the states of New York, Pennsylvania, South Carolina, Washington, and Wisconsin.   

 

Q: Why collect sales tax for these five states?

State-level sales tax is a matter of state law.  Different states have different requirements when it comes to sales tax.  We have a presence in the states listed above, and their laws require that we collect sales tax on certain types of products that we sell. 

 

Q: How is sales tax calculated?

Sales tax is generally calculated on the total selling price of your order based on your state’s tax rate.  Our products are delivered electronically but in the event we sell a product that is shipped to one of the states for which we collect sales tax, the total selling price will likely include any shipping fees.


Q: I am not a resident of any of the states listed. So, I’m in the clear, correct?

Not necessarily.  U.S. state and local jurisdictions generally impose a use tax on taxable products a consumer purchases from out-of-state vendors when the vendor has not collected the tax. Therefore, you may be responsible for reporting and remitting your state’s use tax directly to your state’s tax agency.

As with sales tax, use tax is governed by state law and the specifics can vary greatly from state-to-state.  Therefore, we urge you to contact your state or local tax agency or your tax advisor on your use tax obligations. 

 

Q: Anything else I should know?

We believe the information above to be accurate as of the date listed below. Subsequent regulations, or revisions to current tax laws may affect the accuracy of the answers provided.


Q: What if I have additional questions? 

If you have any more questions, please contact memberservices@fool.com

 

Last Updated: November 13, 2018