sales taxes coming to membership sites soon...

You really need to implement a way to handle collecting sales taxes. The new Supreme Court ruling opens up all states' ability to tax internet companies now.


In most states, services like ours have been excluded. That won't last much longer. You need something in place before it happens, not after.


https://www.nytimes.com/2018/06/21/us/politics/supreme-court-sales-taxes-internet-merchants.html

I'm wondering, is it possible that even if sales tax is implemented across all states, membership sites would be exempt since it's not a tangible product we are selling and shipping? I just went to an expo out of state (Utah) and sold my membership in person to anyone who wanted to subscribe, and after I explained by business, (the tax person that handles that kind of paperwork for the expo told me I didn't need to collect taxes because I wasn't selling a physical product (if I recall correctly).

Depends on the state, Curtis, as do most things tax related. The article below shows the current status of states that tax digital goods. But the real issue is that all states want more tax revenue, so I'd be shocked if most don't implement similar tax laws in the near future.


As an example, we are about to hire a remote worker in KY. We called their tax office, and it turns out our fully digital membership requires us to pay sales tax (and income tax) in that state now that we will have nexus due to our employee.


MM can't handle that, so it's a totally manual process. We are lucky that KY has only one sales tax rate jurisdiction so things are fairly simple right now. But if it were a state with 50 different jurisdictions, we wouldn't be able to hire that employee because we can't handle the admin work.


Getting back to the Supreme Court ruling, though, it's also not going to matter soon if we have nexus or not. So, we'll have to collect and remit sales taxes in all the states where digital goods are taxed. And that's a bear when there are a ton of jurisdictions.


Bottom line... things are manageable right now. But they won't be in the future (probably within 2 years). MM needs to be looking forward to help us handle this. Or they'll lose all their honest, tax paying customers.


For what it's worth, my recommendation is that they integrate with Taxjar or a similar service.


https://blog.taxjar.com/sales-tax-digital-products/


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