Why Am I Being Charged Sales Tax?

shopping cart with product boxes

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:

  • California
  • Colorado
  • Georgia
  • Illinois
  • Maryland
  • Massachusetts
  • Michigan
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Washington
  • Wisconsin

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 and request your exemption status here.

Quick Links

Request tax-exempt status
If you are in CA, CO, GA, IL, MA, MD, MI, NC, NJ, NY, OH, PA, WA or WI, and are tax-exempt, request your tax-exempt status after creating an online account.

Create an online account
Create a free online account to store your addresses and re-order with one click.

The U.S. Supreme Court Decision
South Dakota v. Wayfair, Inc., et al.