Do I owe additional tax fees on my RightStuf.com purchases?
Depending on the current laws of your state, you may owe sales tax and/or use tax on your purchases from Right Stuf and RightStuf.com.
Companies that do business over the Internet and by catalog (i.e., remote sellers) are required to follow similar sales tax collection requirements as brick-and-mortar retailers. Per the Internet Tax Freedom Act (ITFA) – which is valid through Nov. 1, 2014 – remote sellers are required to collect taxes where they have a physical selling presence, such as retail locations, company headquarters and/or warehouses. If they do not have this presence, they are not required to collect sales and use taxes.
While the above act does prevent governments from establishing “penalty” taxes on Internet transactions and access, it does not prevent them from enforcing existing sales tax collection regulations across platforms that include the Internet.
- Because Right Stuf is headquartered in Iowa, all orders shipped to locations in the state of Iowa are subject to tax, and we collect this tax on the state and local municipality’s behalf.
- When you buy a gift certificate, no sales tax is charged. Instead, when you redeem a Right Stuf gift certificate, whatever you purchase may be subject to tax.
- Even if Right Stuf does not collect the sales and use tax on your state or local government’s behalf, you may still owe these taxes on your purchases. Many states require you to report all “taxable purchases” that were not taxed – and to pay tax on those purchases – when individuals file their annual income tax returns. You can find details about these requirements on the web sites for your state and local tax agencies.
- If you represent an organization (or are a wholesale customer) that has tax-exempt status, and need this applied to your order, please contact our Customer Care representatives for assistance and eligibility requirements.
- Some specific information for Colorado and Oklahoma residents is below.
Which products are subject to sales tax?
How much tax – or if tax is charged – depends on the following:
- Where the seller is located.
- What kind of item is purchased.
- Where the item is being shipped.
- The total selling price of the item/purchase. (See below.)
How is the tax calculated?
If you are an Iowa resident, the tax is based on the total selling price of each individual item, according to state tax laws. The total selling price for an individual item includes any item-specific discounts or your Got Anime discount. Shipping and handling charges, even when prorated for partial shipments, are not taxable in Iowa.
The tax applied to an order will usually be the combined rate of the state and local rates at the destination to which the item is being shipped. (This means that the tax rate may be different for an order shipped to your work address when compared to the identical order when it is shipped to your home address.)
Colorado and Oklahoma Residents
Right Stuf does not collect the sales and use tax in most states, and for those states that do impose these taxes, your purchase is usually subject to tax unless they have specifically declared it exempt.
You may still owe these taxes on your purchases. Many states require you to report all “taxable purchases” that were not taxed – and to pay tax on those purchases – when individuals file their annual income tax returns. You can find details about these requirements on the web sites for your state and local tax agencies.
Oklahoma residents may report and pay their taxes as part of their Oklahoma individual tax return [Form 511] or file a consumer use tax return [Form 21-1]. For more information (and copies of these forms), visit the Oklahoma Tax Commission’s site at www.tax.ok.gov.
Colorado residents should be advised that we may be required to provide an annual summary of their purchases to them (to assist with the filing of their tax returns). We also may be required by law to report the total dollar amount of your purchases for the calendar year to the Colorado Department of Revenue. Right Stuf respects your privacy, and no details beyond the total dollar amount of your purchases will be provided to this agency, should we be obligated to do so.