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So, if a state has a flat sales tax for all purchases then that's pretty easy to implement. But often you tax different categories of product at different rate
by Symmetry 8y ago
So, if a state has a flat sales tax for all purchases then that's pretty easy to implement. But often you tax different categories of product at different rates. And there are fuzzy edges. The advertisements for Fig Netwons famously were "a cookie is just a cookie, but Newtons are fruit and cake." But is that true, legally speaking? And if it's true in one state jurisdiction does that that necessarily translate to another? How you you avoid having to figure out the tax rate for each product you carry in each of the 50 states?
- swsieber 8y agoI would think the same way any national chain does it.
- Symmetry 8y agoThat's true but stores have an advantage in that if they mess up it's harder for regulators to notice. But I'd bet the way this actually works is that companies mess up on this all the time and regulators will yell at companies to fix it before they start resorting to fines.
- devmunchies 8y agoThats why companies like Avalara exist and are doing well. https://www.crunchbase.com/organization/avalara https://www.crunchbase.com/organization/avalara (not affiliated in any way)