On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision overruled a longstanding physical presence rule, allowing states to require remote sellers to collect and remit sales tax. Since this Supreme Court ruling, most (but not all) states have adopted new rules defining what establishes a sales and use tax obligation, known as nexus.
Nexus is typically established by calculating the number of transactions or sales volume in a state and if they surpass a certain threshold, the online seller must collect sales taxes.
We understand that the Wayfair decision introduced a lot of complexity for states, businesses, and consumers. Neptune works with a trusted third party to help determine its obligations from state to state. If you see sales tax on your shopping cart, the reason for this change is that we are now required by law to charge taxes in your state.
Please do not hesitate to Contact Us if you have any questions.