Why Am I Being Charged Sales Tax?

In 2018, the U.S. Supreme Court ruled that states may levy sales or use taxes on purchases made from out-of-state sellers who have no physical presence in the taxing state.

Following the ruling, many states have adopted rules that require out-of-state sellers to collect sales and use tax when the seller exceeds a certain number of shipments into the taxing state or exceeds a certain amount in revenues.

Currently, A-M Systems meets those conditions or has a physical presence, and is required to collect sales tax, in the following states:

Are you from any of these states and are tax-exempt?

The Supreme Court Decision

In South Dakota v. Wayfair, Inc., the U.S. Supreme Court voted 5 to 4 to overturn Quill Corp. v. North Dakota (1992) which had held that the Dormant Commerce Clause prohibited states from forcing out-of-state retailers to collect sales or use taxes on mail-order or internet purchases unless the sellers have a physical presence in those states.

The latest decision also overturned a 1967 case, National Bellas Hess v. Illinois, that had held a mail-order business was not required to collect and remit sales or use taxes unless the seller had a physical presence in the taxing state.

Writing for the majority, Justice Anthony Kennedy stressed that "the Internet�s prevalence and power have changed the dynamics of the national economy." And that "The expansion of e-commerce has also increased the revenue shortfall faced by States seeking to collect their sales and use taxes."

If Your Organization or Institution is Tax-Exempt

If you're tax-exempt, we require a usage-based exemption certificate, such as a resale certificate, an entity exemption certificate for governmental organizations, or another state-issued tax-exempt certificate.

Please, sign up for an online account with at least one shipping address and request your exemption status here.