Taxes that appear on your online order are approximate. The actual
taxes charged to your credit card will reflect the applicable state and local sales
taxes, and will be calculated when your order is shipped. Orders shipped to CA will
have all applicable local and state sales taxes added to your total order, and to your
shipping charges where appropriate.
To be clear, the Internet Tax Freedom Act (ITFA), which was signed into law on October
21, 1998, does not, as some have asserted, preclude sales and use taxes on any and all
commerce conducted over the Internet. State and local governments are allowed to impose
sales and use taxes on all such electronic sales, provided that the tax (and its rate)
are the same as that which would be imposed on the transactions if they were conducted
in a more traditional manner, such as over the phone or through mail order.
The ITFA is intended to prevent any jurisdiction from imposing special taxes on Internet
transactions, other than such taxes that a jurisdiction already has the ability to
impose (e.g., sales tax; see below). The ITFA prevents the imposition of any such taxes
through November 1, 2014.
Currently, most e-commerce companies use the same taxation rules used by mail-order
companies, which are based on constitutional guidelines for interstate commerce.
Generally this means that states can only require companies to collect sales tax in
states where they have business operations, and as a result, a company will not collect
sales tax in states where they have no business operations. If someone were to order
something from one of our catalogs, that person would only be charged sales tax if he
or she shipped his or her order to a state where Origin Software, Inc. has physical operations.
Example: If a person shipped something to Wyoming, Origin Software, Inc. would not be required to
collect sales tax because it has no business operations in Wyoming.
The ITFA also prohibits state and local governments from imposing taxes on Internet
access charges, protects against the imposition of new tax liability for consumers and
vendors involved in commercial transactions over the Internet, and creates a temporary
commission to study taxation of Internet commerce and to report back to Congress in 18
months on whether the Internet ought to be taxed and, if so, how taxes can be applied
without subjecting the Internet and electronic commerce to special, discriminatory, or
multiple taxation.