Sales Tax Rules Change

To Our Customers:

Most of you, if you follow the news at all, have probably heard of the recent Supreme Court decision in the case of South Dakota vs. Wayfair.   This decision has altered the rules about when and why sales tax must be collected.

Currently, EnMart and Ensign Emblem collect sales tax in the states where we have a presence, MI, GA, IL, CA, NV and NJ, as was required by previous tax law.   With the advent of the new decision, we will also begin collecting sales tax on all orders that ship to AL, IN, KY, MO, WA and WI.     It is likely there will be additional states added to this list in the near future.

If you are currently in one of the states listed above, you can establish your tax-exempt status with EnMart/Ensign by completing the relevant state sales tax exemption form and submitting it to us.    This form should be completed in your legal business name.   We will begin charging sales tax in the additional six states listed above on October 1, 2018.    If we do not have a completed form on file by that date, your account will be charged sales tax until such time as the completed form is on file.

Please be aware that,  even though we are currently only adding six additional states,  most states will probably be requiring sales tax collection in the near future.   Even if you are not in one of the states in which we currently charge tax,  it still might be worthwhile to complete a sales tax exemption form for your state and send it to us.  All forms are kept on file,  and once an account is set to exempt status it will remain so.

For a current list of taxable states, links to their respective exemption forms, and for submission of your completed forms, please visit our Sales Tax Exemption Forms and Links page.

As always, our goal is to remain compliant with all applicable laws and regulations.

Thank you for your assistance and cooperation.

Understanding Sales Tax

Sales tax,  particularly in the wake of the Supreme Court’s recent decision in the case of South Dakota v. Wayfair Inc. can be a very confusing subject.   While it may be some time before that decision has an impact, understanding its potential effects could be useful for almost any business owner.  Until the full implications of the new ruling become apparent, a simple understanding of why sales tax is required and how it works can also be very helpful.

What is sales tax?

Sales tax is a retail point of purchase tax imposed by many states and cities and paid by a purchaser when a sale is made.  Some states and cities do not have a sales tax.  Most do.   Business owners,  by law,  are required to collect the sales tax and remit it to the proper organizations within the states and cities in which they are required to collect the tax.

How do you know if you’re required to collect sales tax in a particular state?

Currently, businesses are required to collect sales tax on all orders coming from states where they have a physical presence,  an office,  a factory etc.  For EnMart, for instance, that means we are currently required to charge sales tax in Michigan, Georgia, Nevada, California, Illinois and New Jersey.  With the advent of South Dakota v. Wayfair Inc. this requirement may change or expand.

What do you do with the tax once it’s collected?

Those requirements will vary by state.   Some states require submission of sales tax payments every month.   Others may require a quarterly submission.   Check with your state and local tax collection authorities to find the schedules and forms for the states in which you have to pay tax.

Is there any way to be made exempt from paying sales tax?

The methods of sales tax exemption will vary by state. Many states offer the option of a sales tax exemption form or certificate which must be completed by the purchaser and submitted to each company from which they purchase.  Companies must have the completed form for each customer who is not being charged sales tax on file in order for the exemption to be legal. Links to the sales tax exemption forms for the six states in which EnMart charges sales tax are on our Policies page.

What if I send resale certificate or other tax paperwork? 

In order to make a purchaser exempt,  the seller must have the completed sales tax exemption form designated by the collecting state on file.  In the event of an audit,  those specific forms would need to be produced,  so no other forms will do.

So,  once the completed form is on file,  I’m exempt?

Most e-commerce software programs now have an option to set customer account status to exempt them from sales tax.   So,  in general, yes,  once the completed form is on file,  your account should then be set to exempt status and no sales tax will be charged.

How to: Order from EnMart

order-onlineIt occurred to me the other day that we put tools in place to make it easier for our customers to order and to take advantage of pricing levels and other incentives,  but what we think is easier might not appear the same way to those who are buying from us.   So,  I started looking at the site through the eyes of a customer,  and trying to figure out,  if I were new to the site,  what I could grasp easily and what might be harder to figure out.  Once I had my list,  I decided to put a blog post together,  to help those of you who buy from us get the most of your EnMart experience.

Wholesale Pricing:  Wholesale pricing is available to those businesses that have a tax i.d. number and who apply for a wholesale account.   If you do not apply and your account is not set up for wholesale pricing,  you will not see those prices nor receive them at checkout.  To apply for a business log-in,  you can click the “I Need A Business Log-in” button on the home page,  or click the “Wholesale” button in the top menu on any other page of the site.   You must submit your tax i.d. number to be considered for wholesale pricing.  Once your application is received,  it generally is approved quickly.   You will be notified by e-mail when your wholesale account is activated.   To see wholesale pricing,  make sure you log-in before you shop.

Pricing Levels: There are some products which only have one tier of pricing,  which is wholesale pricing.   Often this is because it is a product which wouldn’t interest the general public,  is one that can’t be seen by the general public,  or is a product that has an industry wide or manufacturer mandated price that we need to meet.  Things like thread,   backingblank patches and bobbins do have both public and wholesale pricing,  so having a wholesale log-in if you’re qualified for one is a good option.

Shipment Times: Our goal is always to ship every order as quickly as we can.  Most orders,  if they contain goods we can simply pull off a shelf will ship same day,  if placed before 2 p.m. Eastern Standard Time.  Things that need to be made,  like blank patches,  have longer lead times for shipping.  When there is a lead time,  it will be noted on the page for the item.   Order shipment speed may also be impacted by the volume of orders received.

Sales Tax: By law,  EnMart is required to charge sales tax in Michigan,  Illinois,  California,  Nevada,  Georgia and New Jersey.  When someone applies for a business log-in,  if they are in one of those states,  the approval e-mail will also contain an attached form,  which must be completed and submitted back to EnMart for an account to be made tax exempt.   If the form is not completed and on file,  we must charge sales tax.

If you ever have questions about anything pertaining to EnMart,  you can always feel free to contact us. We want your shopping experience with EnMart to be a good one,  so feel free to reach out if you need any assistance.

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