Confused yet? We sure were, so we hired an extra accountant to manage online taxes and use software integration to streamline this as efficiently as possible. As you can imagine, in the destination based states when one city changes its tax rate, we need to know about it to report taxes correctly, this becomes near impossible without software integration.
*In some states the tax code is extra challenging. We've been advised to charge "the highest local tax" state wide so that we don't under report while the law figures out a practical way to do online taxes. So what does this mean for you? A small minority of our customers will have a tax rate slightly above their current local tax rate. This equates to a few extra cents being paid in taxes. We report and pay this to the state. This prevents us from under collecting and causing long term problems. We appreciate your understanding and rest assured we hope the law gets streamlined soon, so we don't have to have an accountant tied up all the time with these taxes and don't need to collect those extra pennies from you