68% of e-commerce pros don't know this 😬

Sales tax news, how to survive Black Friday/Cyber Monday sales tax, and more...

Author

Rohit Bhadange
October 06, 2024

Happy spooky season, trash talkers. 👻

With Black Friday and Cyber Monday (BFCM) right around the corner, more transactions = more sales tax risk.

And non-compliance is pretty freaking scary.

Rest assured! Today, we’re getting rid of your sales tax scaries with (1) sales tax updates (2) some shocking stats + top tips for navigating BFCM and (3) a Q&A below.

SALES TAX NEWS

1️⃣ In Florida, a September sales tax holiday helped Floridians prepare for storms as the state moved into peak hurricane season, while another sales tax holiday aimed to help people buying tools and work gear.

2️⃣ In Louisiana, the Department of Revenue (DOR) has granted an automatic filing and/or payment extension for taxpayers impacted by Hurricane Francine.

3️⃣ Effective January 1, 2025, a provision of Illinois HB4951 goes into effect, which caps the sales tax vendor discount to $1,000 per month.

4️⃣ According to the Texas Comptroller, state sales tax revenue totaled nearly $3.85 billion in September 2024, 1.5% more than in September 2023.

5️⃣ State sales tax on food in Kansas will reduce to 0% by Jan. 1, 2025. This follows a reduction in food tax from 6.5% to 4% in January 2023, and 2% in January 2024.

6️⃣ From October 25-27, 2024, Nevada is having a National Guard Member sales tax holiday for purchases made by National Guard members.

7️⃣ Claiming that the rule was arbitrary and contrary to congressional intent, attorneys general from New York, New Jersey and Connecticut asked to revive their challenge to an IRS rule regarding the federal cap on state and local tax deductions.

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Customers are spending as little as 2 minutes per month on sales tax.

THE RESULTS ARE IN… AND THEY’RE CONCERNING 😬

Are businesses actually prepared for the upcoming holiday shopping season?

Zamp found some shocking insights in a September 2024 sales tax survey that polled 1,000 respondents in the e-commerce industry.

One is that a whopping 68% of those surveyed did not know how tax laws could impact their business for the upcoming holiday season.

If companies aren’t prepared for the sales tax implications that come with an increase in sales, they may not be compliant in the states where they do business.

This can led to severe financial penalties that can reach upwards of 25%, depending on the state.

Get the full scoop + the sales tax compliance tips you need to survive the most wonderful time of the year below.👇

PARTNER SPOTLIGHT

Above The Fray is an end-to-end ecommerce agency built of highly experienced thinkers and doers, all with common thread. They learn from their scars, roll up their sleeves and press on with a sense of adventure, leaving the nonsense behind.

Business and technology are challenging enough, why add unnecessary BS? Move on up to the front and drop them a line, or reply to this email for a direct intro to their team.

UPCOMING EVENTS 🎉

Webinar

Thursday, October 10th, 10am PDT

Join us for a live conversation with the CEO and CMO of Bearbottom Clothing, an 8-figure apparel brand. We’ll deep dive into the challenges of translating ecommerce profitability from paper gains to liquid value, discussing the importance of cash flow for your organization.

Webinar

Thursday, October 10th, 10am PDT

Whether you’re running a B2C or B2B ecommerce business, designing, implementing and evolving an effective and compliant order-to-cash workflow is challenging. We’re here to help you navigate the complexities.

In-Person Event

Thursday, October 10th, 12pm

Hear from speakers, panelists and sponsors as we dig into how your website can drive your business forward. We’ll dive into the world of ecommerce best practices, new technology, trends and expert information.

In-Person Event

Monday, October 28th & Tuesday, October 29th, 10am-4pm each day

Headed to Intuit Connect in Vegas? Take a break from the crowds and join Zamp poolside at the Aria. Stop by for a bite, drinks, and a massage—yup, you heard that right. When we say relax, we really mean it!

YOUR QUESTIONS, ANSWERED!

Q (Stacy): What triggers a sales tax audit?

A: Sales tax audits can be triggered by discrepancies between reported sales and actual sales, random selection by tax authorities, late filings, or significant changes in tax reporting from one period to another.

Thanks for reading along.

I’ll be back next month with more sales tax shenanigans.

If you enjoyed this one, please share it with your network. 🤝

If you found it helpful, reply back and let me know. I live for the people.

If you have any feedback, suggestions or questions, please let me know by responding to this email or DM me on Twitter or LinkedIn.

Until next time’s 🗑 …

Rohit & the Zamp team