True Leaf Market Sales Tax & Tax Exemption FAQ
Due to recent changes in sales tax regulations and court rulings, ecommerce companies are now required to collect and remit sales tax on behalf of the various states that require it. Organizations that are exempt from sales tax must have a current tax-exempt certificate on file with us.
Q: Are all products subject to sales tax?
A: What items are and are not taxable varies from state to state. Some states do not charge any sales tax (Montana, Oregon, Alaska, New Hampshire & Delaware). Other states charge tax on all products. Most states treat food producing seeds as food and do not impose sales tax on those seeds, while ornamental seeds and other items are taxed. True Leaf Market charges sales tax by product based on the state requirements of the shipping address of the order.
Q: How is sales tax calculated?
A: Sales tax amounts vary by state, county, city and other considerations. The applicable tax will be calculated at final checkout based on the shipping address of the order.
Q: Why does the checkout show “estimated” sales tax?
A: Because of the complexity of the sales tax calculation, the final sales tax calculation is made at the conclusion of the order when all variables are available. Prior to that final calculation sales tax, your taxable amount will be estimated. It is important to note that in states that do not charge tax on food producing seeds, those seeds may (or may not, depending on circumstances) be included in the estimate, but will not be taxed in the final calculation at checkout.
Q: What is a Tax Exemption Certificate / Reseller Permit?
A: A Tax Exemption Certificate (sometimes also called a Reseller Certificate, or Reseller Permit) is a simple form issued by your state that sales tax exempt businesses and organizations can fill out and submit to a vendor so that vendor will not charge sales tax on orders. Organizations that are naturally tax exempt (churches, government agencies, etc) and organizations purchasing product for resale or for product inputs (professional growers, businesses reselling seeds, etc) are examples. The regulations vary by state and each State Tax Department is responsible for issuing tax exemptions to qualifying businesses (sales tax certificate, sales tax id number, etc.). Check with your State’s Tax Authority for more details.
Q: Where can I get a Blank Exemption Certificate to Fill Out?
A: Each state has forms available. Check with your State’s Tax Authority to find the correct form to fill out. True Leaf Market must have your filled out form on file, in order to not charge you sales tax.
Q: How do I send my exemption form into True Leaf Market?
A: Please send your filled out form in PDF format to email@example.com. Please put “Sales Tax Certificate” in the subject line. Please DO NOT send the file in a zipped file. We will not open it. You can also send by mail to:
ATTN: Accounting Department
True Leaf Market
175 West, 2700 South
Salt Lake City, UT 84115
Q: How long from receipt of the Certificate before it is applied, and I am not charged sales tax?
A: Generally, 1 to 2 business days. Your exemption will be applied to your registered online account with us. You will only be exempted when ordering through that account. If you create a new account, or checkout as a guest, you will be charged sales tax at checkout.
Q: Can I expedite the process of getting my exemption applied?
A: Yes, call customer service during regular business hours for assistance in expediting the process. 801-491-8700.
Q: What if I’ve paid sales tax that I wasn’t obligated to pay? Can I get a refund?
A: Once collected, True Leaf Market will remit that tax to your state and is not able to refund the sales tax. However, most states have a process to apply for and be refunded overpayment of sales tax. Please contact your State’s Tax Authority.
The information provided above should not be considered or relied upon as tax advice. Please contact your professional tax advisor or your State’s Tax Authority for advice and guidance.