Destination Tax Questions, Answers, and Definitions
  1. Why are you guys giving this stuff away for free? Other places are charging big bucks for this.
    Although we offer integrated solutions for those who want them, we also use an ad-based model to generate revenue on our site. Doing so allows us to build these free online tools, which greatly benefits smaller e-commerce sites who may not have the resources to fully integrate destination based sales tax solutions into their websites. Although the free tools may not be as convenient as having your tax calculated, collected, and reported automatically as with an integrated solution, they give smaller online companies a liferaft to grab onto.

  2. It it okay to use only a 5-digit zip code to look up a destination tax rate?
    Only if you have, through 'due diligence', tried to determine the 9-digit zip code of a street address but have failed. Due diligence is defined as using a certified address standardization software (CASS) to find the 9-digit zip code. Think expensive service. Ours is pretty cheap, and even free if you are just using our online tools.

  3. Who are you? What got you started doing this?
    I built this site because I run my own e-commerce sites, and I have a lot of experience programming with PHP, mySQL, XML, javascript, blah, blah, etc. I also understand e-commerce very well, and know what it is like to have (and be!) a smaller onliner retailer. I know the requirements for destination based sales tax, have built my databases and programs in accordance with the regulations of the Streamlined Sales Tax Project, and wanted to share that with those people who are more concerned with their business that the backend doldrums of taxation.

  4. What else are you going to add to this site?
    Enhancement of the existing tools for right now, unless someone has a really great idea they'd like to suggest. I'm pretty busy besides this website, so my time is very structured in terms of what I can get done.

  5. You mentioned other websites. What are they?
    The Gaming Graveyard and The Game Cellar. Thanks for asking.
Definitions:
  • Destination-based Sales Tax: Sales tax charged on (currently) intrastate orders based on the delivery address of the product. Does not apply to wholesale sales, services, sales of motor vehicles, trailers, semi-trailers, aircraft, watercraft, modular homes, and manufactured and mobile homes.

  • Streamlined Sales Tax Project (SSTP): The Streamlined Sales Tax Project (SSTP) is an effort by state governments, with input from local governments and the private sector, to overhaul the existing sales and use tax system. The project was organized under the National Governors Association and the National Conference of State Legislatures in March 2000. The goal of the SSTP is to reduce the costs sales tax compliance for businesses through a combination of simplified laws and administrative policies. Thirty-nine states and the District of Columbia are participating in the SSTP as implementing states. New Jersey and New York are members.

  • Destination Tax Calculator: Our free online tool for calculation of a destination based sales tax rate using a 9-digit zip code. Also functions for 5-digit zip codes (9-digit is recommended for accurate results). Destination Tax Calculator

  • Address Standardization: A method used by the USPS, UPS, and other shipping agencies for standardizing a user-inputted address to aid in expediting shipping service. Our free online tool is NOT a CASS-certified method, but is designed to function in conjunction with our integrated tax calculator solutions. However, it does a pretty good job of fixing up an address for you, and can look up 9-digit zip codes based on a street address and 5-digit zip code (Washington state only, currently). Address Standardization Tool

  • 4-digit zip code: Also known as plus 4, zip+4, and location code. The last 4 digits of a zip code used to specify an exact location for mail delivery, and in the case of destination based sales tax, the taxing district that defines the tax rates for a sale.

  • e-commerce:Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

  • XML: XML stands for EXtensible Markup Language and is a markup language much like HTML. It is designed to 'carry data', not display it. Unlike HTML, XMLs tags are not pre-defined. It is designed to be self-descriptive, and is recommended by W3C. We use XML in our cross-platform solutions so that e-commerce sites using all sorts of different languages can utilize our free and integrated services. Our program is designed to accept data via either the GET or POST methods.

  • GET method: A method of transferring data to a server through a URL.

  • POST method: Another method of transferring data to a server, not via a URL.
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