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Sales Tax

How we calculate sales tax

On June 21, 2018, the United States Supreme Court ruled in favor of the state in South Dakota v. Wayfair, Inc. This ruling allows the state to tax remote sales via their economic nexus laws. Since this verdict, more than 40 states have enacted economic nexus laws of their own.

Before this ruling, states could only enforce a tax collection obligation on businesses with a physical presence in the state, so Band Shoppe was required to charge a 7% sales tax to Indiana residents. Purchases outside Indiana were not charged this tax because our physical presence was limited to our Southern Indiana warehouse.

As a national retailer, Band Shoppe must collect and remit sales tax in certain states to comply with economic nexus laws on all non-tax-exempt orders shipped to specific states. This tax obligation is based on several factors, including sales revenue, transaction volume, or a combination of both. Bandshoppe.com automatically estimates this sales tax in the checkout form. All appropriate charges are added to your merchandise total and displayed for your review before inputting your credit card information (tax displayed on this page may change if you decide to update your shipping address). The final sales tax charged to your credit card is calculated when your credit card charge is authorized and reflects applicable state and local taxes.

For example, as of writing this, packages shipped to Manhattan in New York City are subject to a combined tax rate of 8.88%. The jurisdictional breakdown is 4% tax required by the State of New York, 4.5% New York City tax, and 0.38% Metropolitan Commuter Transportation District tax.

Band Shoppe does not charge tax when buying gift cards; all appropriate taxes will be charged on the purchase when redeemed.

Tax Exemptions

Qualifying tax-exempt organizations must have a certified exemption form on file with Band Shoppe to qualify for tax exemption.

You may submit tax exemption forms to our sales team by fax, mail, or email. Once received, the document goes into our cert capture system, where we add the proper billing and shipping address to identify the exemption code (including school, charity, and non-profit). After that, when you purchase using the tax-exempt account, our system will cross-reference the customer number in our database to know if you should or should not be charged sales taxes.

If your organization qualifies for a sales tax exception, please use our submission form before checkout. We are unable to refund sales taxes without a full order return. Click here to review our return policy.

Updated: 09/21/2023. For more information regarding applicable taxes on your order, please consult a tax professional.

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