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 applicable state and local sales tax for orders placed by residents of following states:
- Alabama
- Arizona
- Colorado
- Connecticut
- District of Columbia
- Georgia
- Hawaii
- Idaho
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Minnesota
- Mississippi
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Washington
- West Virginia
- Wisconsin
Q: Why collect sales tax for these states?
State-level sales tax is a matter of state law. Different states have different requirements when it comes to sales tax. The laws of the states listed above 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.
Credit from existing subscription that is used towards a new purchase is seen as a cash value applied towards the new purchase. The sales tax is calculated on the new product's total price, and then the credit is applied on the total amount due. When the credit from existing subscription is calculated, the previous sales tax paid is also prorated the same way. The total credit amount includes the prorated sales tax previously paid.
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 [email protected].
Last Updated: April 19th, 2024