The Naked Truth About Clothing and Sales Tax
Thank you to our partners at Avalara, who hosted a webinar for us on the challenges, and solutions to, the treacherous landscape of managing state-to-state clothing tax laws. From common misconceptions to the specific quirks in certain states (different taxes for different-sized boots?) Avalara covered everything an e-commerce clothing retailer would need to know. Here are some of the highlights:
Webinar host Jennifer Myers stresses the importance of understanding nexus for those in the clothing industry. “Nexus” is the connection between a state and a business, and allows a state to compel an out-of-state company to register and collect sales tax. The out-of-state company must have a “physical presence,” but that definition is changing, something the webinar goes into more detal about.
The webinar will help clarify:
• Whether you have established nexus in the last year
• The confusion regarding Florida, Texas, and New York’s state tax laws on clothing
• Product taxability
• Product Exemptions
Jennifer also details the risks of determining sales tax rates by zip codes, and the inaccuracy of the practice.
For more on managing the treachery of state-to-state tax laws on clothing, you can review the slides here, or view the full webinar.