Circle Graphics Charging Sales Tax for Orders Shipping to Five States
The purpose of this newsletter is to make our customers aware of a new policy concerning our collection of sales and/or use tax on certain orders. Effective March 13, 2006, we will begin collecting sales and/or use tax on orders shipping to the following five states where we either have business offices or sales offices: California, Colorado, Michigan, New York, and Utah. Please note that we have recently established a presence in these states and are thus required to implement this change.
Sales and use tax rates are a function of the individual taxing entity (i.e., state, county, or other jurisdiction). Circle uses commercially available tax data tables to determine the appropriate amount of tax to charge for applicable orders. As a reminder, this policy only affects orders shipping to the five states where we have a business presence. If your purchase should be tax exempt, please complete a sales tax exemption certificate (see information below) and fax it to 303-532-2383.
Finally, please advise your account manager of any questions you may have concerning this policy or feel free to contact Rod Rackley, EVP of Customer Care, at 303-532-2370.
Sales Tax Exemption Certificate
Some organizations are exempt from sales tax (e.g., non-profit, 501(c)(3), certain governmental entities, and certain re-sellers). If your company is exempt from sales tax, please complete the form below and fax it to our accounting department at (303) 532-2383.
Sales tax exemption certificate:
http://www.revenue.state.co.us/PDF/dr0563.pdf
Sales Tax Primer
If a business has established a direct or representational presence within a particular state or jurisdiction, such as a factory, warehouse, or sales office, the state requires they collect and remit sales and/or use tax from customers in that jurisdiction.
Consumers who live in a jurisdiction that has sales and use taxes are required to remit those taxes to the jurisdiction(s) when it isn't collected by the seller.
If the taxes collected by the seller are less than the taxes mandated by the jurisdiction(s) then the consumer is required to remit the difference. This is generally done on the businesses sales and/or use tax filing.