Summary:
Destination Based Sales Tax.
General Sales Tax Rate: 5.5%.
Over $100,000 in sales during the current or prior calendar year.
Transactions made through a registered marketplace facilitator excluded: No.
Transactions made to a reseller excluded: No.
Limited to certain transaction types: TPP, taxable services, and products transferred electronically only.
Services: Not taxable, with a few exceptions.
Digital products are taxable. The sale of a digital product is subject to the general rate of tax if the non-digital or physical form would be subject to sales tax.
For example, the sale of digital music, books, magazines, newspapers, and movies are taxable since the sale of a CD, paper-bound book, DVD, and printed magazines and newspapers are taxable. The sale of a digital publication copy is taxable provided the publication is downloadable to the subscriber’s electronic device. If the subscriber is allowed only to access and view an online version of the publication and the digital copy may not be downloaded, the subscription is not taxable.
SaaS Products: Not Taxable.
When To Register: Next transaction after you meet the nexus criteria.