Sales and Use Tax

Flame Havens: Understanding Sales and Use Tax for Online Purchases

At Flame Havens, we strive to make your shopping experience as seamless as possible. As part of our commitment to transparency, we want to help you understand the sales and use tax laws that may affect your online purchases.

Sales Tax vs. Use Tax: What’s the Difference?

Sales Tax is a tax imposed on the sale, transfer, or exchange of taxable goods or services. It is typically added to the purchase price at checkout and is collected by the retailer.

Use Tax applies when you purchase items outside of your home state and were not charged sales tax at the time of purchase. It’s essentially a complementary tax to the sales tax and is intended to ensure that states still collect tax revenue on out-of-state purchases.

Do I Have to Pay Tax on Online Purchases?

The short answer: it depends on where you live and where the retailer is located.

Historically, the 1992 U.S. Supreme Court ruling in Quill v. North Dakota established that states could not require out-of-state retailers without a physical presence ("nexus") in the state to collect sales tax. This led to a boom in tax-free online shopping. However, it was still the consumer’s responsibility to report and pay use tax on their state tax returns—a rule that many shoppers overlooked.

Fast forward to June 21, 2018, when the U.S. Supreme Court’s decision in South Dakota v. Wayfair changed the landscape. The court ruled that states could require out-of-state businesses with "economic nexus" (i.e., a certain level of sales or number of transactions in the state) to collect and remit sales tax, even without a physical presence. 

Navigating the Complex Tax Landscape

The U.S. is home to thousands of tax jurisdictions, each with its own rates and rules. Even neighboring properties can have different tax rates! To simplify this complexity, Flame Havens uses advanced tax software that calculates the exact tax amount for every order based on the shipping address.

Where Flame Havens Collects Sales Tax

We currently collect and remit sales tax in the following states:

Arizona

California

Colorado

Connecticut

Florida

Georgia

Idaho

Illinois

Indiana

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Nevada

New Jersey

North Carolina

Ohio

Oklahoma

Pennsylvania

South Carolina

Tennessee

Texas

Utah

Virginia

Washington

Wisconsin

District of Columbia

If your shipping address is in one of these states, you will see the sales tax calculated and added to your order during checkout.

States Where We Do Not Collect Sales Tax

For states not listed above, Flame Havens does not currently collect sales tax. However, this does not necessarily mean your purchase is tax-free. You may still be responsible for reporting and paying use tax on your state tax return.

Staying Compliant with Evolving Tax Laws

The laws surrounding online sales tax are constantly evolving. Flame Havens is committed to staying up-to-date with these changes and ensuring compliance with all applicable state and local tax regulations.

If you have any questions about how sales tax applies to your order, please don’t hesitate to contact us. We’re here to help you navigate this complex area and ensure that your shopping experience with Flame Havens is as smooth as possible.