Here’s a brief explanation of what’s changed and why:
A recent Supreme Court ruling had a nationwide effect on the way online retailers with no physical shop collect sales tax. Before the ruling, a 1992 case said the Constitution bars states from collecting sales taxes from companies that do not have a substantial connection to the state. That was overturned and now requires retailers to start collecting state sales tax for online orders regardless if the business has physical stores or not.
You can read more about it here.
The tax is charged based on the delivery address. There may be state, city, and county taxes assessed depending on the address. We use automated tax software to look up tax laws by address and assess the correct amount to collect.
We understand the concern with this change and we are required by federal law, going forward, to collect sales tax on every order we process.