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Knowledge Base

Guide to State Sales Tax Compliance

As you may know, state sales tax reach is steadily expanding into the digital product market. As a business with sales across the U.S., we are legally required to collect the tax on taxable products/services from all customers located in the applicable states and remit them to the Department of Revenue. To ensure state sales tax compliance, we are collecting state sales tax on certain products and services purchased by customers whose Account Holder address is in one of the following states:

A-M N-S T-Z
Arizona New Mexico Texas
Connecticut New York Tennessee
Hawaii Ohio Utah
Illinois (Chicago**) Pennsylvania Vermont
Iowa Rhode Island Washington
Kentucky88 South Carolina Washington DC
Maryland South Dakota West Virginia
Massachusetts    
See the Common Questions section for Chicago zip codes and the products taxed in Chicago and Kentucky.

 

Common Questions

As taxable products/services are continuously updated by the state tax jurisdiction, only specific products/services will be taxed. In cases where there are bundled products, a separate line item will be listed for each product affected.

Products affected may include the following:

Call Center Domain Premium Facebook Other DIFM Smart Calls
Call Tracking Service Domain Redemption Fees Google/Bing Places Other DIY Software as Service
Certified Offer Services/Brokerage Domain Registration Internet Marketing Other Domain Services VOL/Gorilla
Customer Design Professional Services Ecommerce Platform Leads by Web Parking Revenue Web Lock Revenue
Custom Design Subscriptions Ecommerce Store Development Subscriptions Legacy Leads Com PPC Website Essentials
DIY Websites Ecommerce Store Development Professional Services Licensed S/W Delivered ED Private Registration Website Forwarding
DIY Ecommerce Email Logos Security Services  
Domain Application Fee Email Marketing Marketing Ads SEO Subscriptions  
Domain Auction Eworks Microsoft 365 SEO Full Services  
Domain Expiration Protection Eworks Ecommerce Mobile Websites Services  
Note: The taxability of each product/service listed above differs depending on the specific tax rules that apply to each state.

All states that have a sales tax have now enacted laws requiring remote sellers to collect sales tax following the Supreme Court's South Dakota. Wayfair decision in June 2018. In addition, taxable products/services are continually updated by state tax jurisdiction.

Sales tax laws and regulations are written and passed by states. Certain states are now collecting taxes on specific digital products/services. As we are required to remit them to the Department of Revenue, we are now required to add those to your bill per state laws.

Yes. All Network Solutions needs is a valid tax exemption certificate, and we will be able to process the refund. We will notify our finance department, who will issue you a refund. Turnaround time for this should be around 5-7 business days.

See the table below.

60601 60616 60632 60649
60602 60617 60633 60651
60603 60618 60634 60652
60604 60619 60636 60653
60605 60620 60637 60654
60606 60621 60638 60655
60607 60622 60639 60656
60608 60623 60640 60657
60609 60624 60641 60659
60610 60625 60642 60660
60611 60626 60643 60661
60612 60628 60644 60666
60613 60629 60645 60707
60614 60630 60646 60827
60615 60631 60647  

Email & Productivity eCommerce, Hosting, & Websites Other Products & Services
  • Email
  • Email Marketing
  • Microsoft 365
  • Custom Hosting
  • DIY (Do It Yourself) eCommerce
  • DIY Websites and Other DIY
  • eCommerce Platform
  • eCommerce Store Development Subscriptions
  • eWorks eCommerce
  • Hosting
  • Mobile Websites
  • Website Essentials
  • Logos
  • SEO Subscriptions
  • Software as a Service

Email & Productivity eCommerce, Hosting, & Websites Other Products & Services
  • Email
  • Email Marketing
  • Google Workspace
  • Microsoft 365
  • Custom Hosting
  • DIFM (Do It For Me) Websites and Other DIFM
  • DIY (Do It Yourself) eCommerce
  • DIY Websites and Other DIY
  • eCommerce Platform
  • eCommerce Store
  • eWorks
  • eWorks eCommerce
  • Hosting
  • Mobile Websites
  • Website Essentials
  • Custom Design Professional Services
  • Custom Design Subscriptions
  • Development Subscription
  • Licensed Software
  • Logos
  • SEO Subscriptions
  • Software as a Service
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