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It looks like US companies may have to start charging their KS 'customers' sales taxes thanks to the recent changes to precedent in how sales tax can be collected by state

https://www.kickstarter.com/projects/petersengames/planet-apocalypse/posts/2461171

Petersen games is adding them in to their planet apocalypse KS pledge manager (NOTE if you've already filled it out they're not back dating charges, but if you haven't you're going to have to pay more, and future projects by the company will all have them included from the start)

apparently it's all down to this https://reason.com/archives/2019/03/19/the-supreme-courts-online-sales-tax-ruli

basically if a company makes as few as 100 sales per year... states appear to be able to pick and choose the number (the other example is 300 sales per year) from any source, be it KS, direct online retail, selling to distributors based there, selling at a conventions there etc they could be on the hook to pay sales taxes.... and yes states apparently consider KS projects 'sales' for these purposes

but you scream KS isn't a sale it's a donation.... well that might be true, but expect to generate many billable hours for your lawyer to prove it if a state decides to argue the case, and even if you succeed there's the problem of the pledge manager, the stuff added on there is pretty much certainly a sale even if its tacked on to a ks project, and even worse those postal fees you're paying, that's a service (are those liable to sales tax?)

now if they're making enough money they could eat the extra tax costs themselves but that could be really expensive (and kill a company running a marginal KS with little or no other income),

they could ignore it and hope nobody in any state comes after them (I bet a fair few who don't have a professional accountant choose this route, some won't get picked up, but if you're running a big money project I wouldn't count on it),

they could try and appeal that a KS isn't a 'sale' but that's going to take lawyers, money and time (and maybe in multiple states? I don't know my US law well enough to say for sure) but as I put above I suspect having a PM might well void this defence anyway

Stop 'selling' via the pledge manager (just allow backers to pick stuff they put the money in for during the KS) and collect the shipping via KS too, probably a 'worse' outcome for backers and company, KS fees on shipping, shipping has to be guestimated before the project is finished and weight/volume of stretches are calculated, no chance to pick up late backers, or more cash from those that did back during the KS


or they could play safe and collect the cash as required by the states and hand it over backers pay more, but the company's legally covered, and the cost increase would also happen if they waited for retail, they'll loose some pledges, but it's probably the safest choice



Now this is based on an outsiders look at those articles, anybody US based with accountancy/tax/legal knowledge want to chip in with opinions or stuff I've overlooked?

In the US services are not taxed, so no tax on postage (except on Ebay, where their "fees" somehow apply to everything)

 lasgunpacker wrote:
In the US services are not taxed, so no tax on postage (except on Ebay, where their "fees" somehow apply to everything)

Actually, I was pleasantly surprised that eBay had begun taxing all my purchases for me since Washington State now requires sales taxes from internet purchases. Oh, and by pleasantly surprised I mean puppy-kicking degree of ire.

 lasgunpacker wrote:
In the US services are not taxed, so no tax on postage (except on Ebay, where their "fees" somehow apply to everything)

thanks for that info,

so an attempt to claim KS goods are not 'sold' might be a bit easier to achieve as long as the pledge manager doesn't allow people to add stuff, but it could still be used to collect postage

Does this mean we can stop worrying about use tax?

 BobtheInquisitor wrote:
Does this mean we can stop worrying about use tax?

Only if you're buying from a CA seller that collects sales tax.

 Breotan wrote:

 lasgunpacker wrote:
In the US services are not taxed, so no tax on postage (except on Ebay, where their "fees" somehow apply to everything)

Actually, I was pleasantly surprised that eBay had begun taxing all my purchases for me since Washington State now requires sales taxes from internet purchases. Oh, and by pleasantly surprised I mean puppy-kicking degree of ire.

I noticed the same thing when I ordered Shadowspear. It had been a long while since I did any online ordering and thought that it was kinda nice while it lasted but the salad days are over I guess.