GPT-4 comes up short 😮

Welcome back to the trash, and no I don’t mean Threads. That’s full on garbage. There is guaranteed gold in this trash and uncensored updates. The truth about the trash is important.

Let’s see what’s we’re eating in today’s trash:

• GPT-4 falls short 🤯 

• Michigan & Kansas change taxability on delivery fees 🚨 

• Overpaying for Amazon Prime? 📦

• Meme of the Week 😎 

• Q from you - “Where to find state specific taxability rules?” 🙋‍♀️

GPT-4 comes up short 🤯 

OpenAI and GPT-4 is all anyone’s talking about, but when it comes to sales tax… it came up short - see what happened:

Situation: 
Imagine you’re an e-comm brand that specializes in selling school supplies.

In August, these products (like many others) fall under ‘sales tax holidays’ in certain states where consumers don't have to pay sales tax for back-to-school related goods.

Question:
So…should you, as a brand, turn off sales tax collection state-by-state and item-by-item on your platform

OR turn it all off and just pay tax out of pocket? 🧐 

ChatGPT: 
"It depends… consult with tax experts."

OpenAI website says “GPT-4 can solve difficult problems with greater accuracy, thanks to its broader general knowledge and problem solving abilities” … but even it agrees, sales tax is too complex.

See what the experts say → 

🚛  Separate your delivery charges 🚛 

Michigan - starting April 26, delivery charges that are separately stated are exempt from sales tax, provided the seller keeps adequate records.

Kansas - Starting July 1, delivery charges that are separately stated on an invoice or bill are exempt from sales tax.

They join over a dozen other states that exempt delivery charges from sales tax when separately stated on the invoice or bill.

Small detail will save your customers money 💰 and make them happy 🤠 

Are you overpaying for Amazon Prime?

Many of you probably spent too much on Prime Day this past week to justify your Amazon membership. We all know most of those items are going to end up in the trash anyways…

Funny thing is, not all Prime memberships are made the same. Some of you pay $139 / year… while others over $149 / year.

And no, there’s no discount code or favoritism. The difference? Sales tax.

Amazon Prime is taxable in 36 states + DC, so choose wisely when figuring out who in the family is responsible for payment. Could end up saving you enough for a Chipotle bowl.

Find product taxability rules relevant to your business →

😎 Meme of the Week 😎

Send us a meme - best one will be featured next week

🌟 Partner Spotlight 🌟

Summit eCommerce is the only bookkeeping service for e-commerce founders by e-commerce founders. Their team can help you understand and manage your finances, your cash flow and help you with a plan for growth.

Interested? Just reply to this email and I can make an intro.

🙋‍♀️ You ask, we answer 🙋‍♂️

Q (Amelia): Where do I find a list of what is and is not taxable in a state?

A: States don’t make it easy.

Within the laws of each state, the taxability of products and services is enumerated.

There are publications for purchase that summarize the states’ tax laws available thorough various vendors but could have implicit interpretations of the law.

States also have department of revenue websites that provide access to the laws and regulations in their state.

Struggling with Sales Tax?

Our team of sales tax experts will answer all your questions and address any concerns for free.

Let’s free you from sales tax.

Thank you for reading along. I’ll be back next Sunday with more sales tax shenanigans.

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Until next week’s 🗑 …

Rohit