As Covid-19 shuts down more and more retailers and puts a hurt on sales tax revenue on all the states, they are becoming more aggressive in collections. Determinations of nexus (liability to collect sales tax) have become more difficult as states changed their laws and conditions. And to make it even more confusing, some are even going after the manufacturers requiring them to collect it.

Generally, my store (The Keeping Room) does not collect sales tax outside of Virginia. I do not meet the volume thresholds in many states to have to do so. However, in the past month I have placed two orders with manufacturers only to see them collecting sales tax and putting it on the acknowledgements on drop ships. This puts me in the uncomfortable position of having to go back to the customer and inform them there will be a correction to their invoice and sales tax will be added. They can of course, cancel their order if they prefer. I cannot absorb that sales tax percentage.

I spent several hours trying to fight this with the manufacturers, who have their own sales tax departments, and was not successful. It was either pay it or cancel your order, or provide us with your Tax Reseller Certificate for that state (I'm not doing that!), which means I would have to collect it anyways.

Obviously one does not kick the hornets next to see if there are any inside, I don't want to make inquires to see if they charge. That just gets everyone wound up and checking to see if they should.

Right now I can tell you that if you live in either Illinois or Pennsylvania, and order either Century or Maitland Smith, you will get charged sales tax. The same parent company owns Hancock and Moore, Jessica Charles, Hickory Chair, Pearson, Highland House as well, so its just a matter of time until it trickles into their accounting departments.

Any orders place with The Keeping Room may be subject to this new collection. I will let you know if it happens and you can choose to pay it or cancel your order. This is not from The Keeping Room, its at the manufacturer level so you will be paying it from any store.