A lot of things are changing with respect to sales tax, and we want to keep you up to date. Here is a list of Frequently Asked Questions received and answered by our Customer Service and Compliance Teams. If you have a question not answered here, let us know at email@example.com or 888-973-0223.
Q: I don't live in South Dakota. Does this apply to me?
A: Yes, probably. The court case is named South Dakota v. Wayfair, because the State of South Dakota sued Wayfair for non-payment of sales tax. This lawsuit went to our nation's highest court where they decided to allow the states to collect sales tax on purchases made from companies not located within that particular state. All states are now permitted to collect sales tax on these out-of-state sales, but not all states have passed laws to do so.
Q: When will CandleScience begin taxing my orders?
A: CandleScience will begin collecting sales tax on orders placed after January 24, 2019, for most states. We have been collecting sales tax on orders in North Carolina and Nevada for several years and must continue to do so as we have a physical location in those states.
Q: What states are affected?
A: If your shipping address is to any of the following states, we must begin collecting sales tax on your orders placed after January 24, 2019: Arkansas, California, Connecticut, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming.
If your shipping address is to any of the following states, we must begin collecting sales tax on your orders in August 2019: Alabama, Arizona, Colorado, Hawaii, Idaho, Maryland, Massachusetts, New Mexico, New York, Texas, Virginia, and Washington D.C.
Q: I want to pick up an order in NC or NV. Will my order be taxed?
A: Yes, unless you have a valid resale or exemption certificate on file with us prior to placing your order.
Q: My state-specific exemption form is asking me to enter seller information. What do I enter?
A: If you have this form pre-filled for use with multiple vendors (like we do), you can leave that section blank. If you choose to fill it, please use the following information:
Seller Name: Candle Science, Inc.
Seller Address: 1717 E Lawson St, Durham NC 27703
Q: I am a business. How will this affect me?
A: If you are a business, you should have an exemption or resale certificate issued to you by your state government. If so, you can submit that information to us and we will update your CandleScience account. Once your information has been validated and processed, your orders from CandleScience will not be charged sales tax. Click here for more information.
Q: I have a resale certificate. What do I do with it?
A: We have a 2-step process for processing and validating your resale information, and will apply it to your account once the proper documentation has been received. Click here for more information.
Q: What is a resale certificate and how do I get one?
A: A resale certificate is issued by your state or local department of revenue and certifies that you are a bona fide business that makes purchases for the purpose of manufacturing or resale. Sales taxes should only be collected on a finished good to the final purchaser, and so the purchase of materials or wholesale goods should be exempt from sales tax. You will need to contact your state or local department of revenue to apply for a resale certificate. For more information, see here.
Q: I do not have a business. Will my orders be taxed?
A: If you live in one of the states listed above, yes. We must collect sales tax on your orders placed after January 24, 2019, unless you have a valid exemption or resale certificate on file with us.
Q: Will I have to submit my exemption or resale certificate every time I want to place an order?
A: No! Sales tax will automatically be removed from your future orders once your exemption information has been received and validated. We do require 3-5 business days to process your information, and we are unable to refund sales tax paid before validation is complete.
Q: What is "use tax"? Is it the same as sales tax?
A: Sales tax is a tax assessed on the sale of a product to the end user. Raw materials used to manufacture a product and goods purchased at wholesale can be purchased without paying sales tax if you are registered as a reseller.
If, however, you purchase materials free of sales tax but do not use the items in your manufacturing process or for resale, you are probably required by your state or local taxing authority to pay a "Use Tax" on those materials because you became the end user.
For example: You are a CandleScience customer buying soy wax and fragrance to make candles, and you have a resale certificate, so we would not collect sales tax from you on your purchases. But let's say you purchase a Candle Making Kit to give to a friend as a gift. In that case, the kit was not used in the course of your business, and since you purchased it tax-free, you will be obligated to report that purchase to your state or local taxing authority as Use Tax.
You'll need to contact a tax advisor to help you if this is not something you are familiar with, as each state is different!
Q: I have my original state issued Seller's Permit (or equivalent), do I need to fill out another form to become tax exempt with CandleScience?
A: We have a 2-step process for registering as tax-exempt, which includes 1) filling out our online fillable form and 2) uploading or faxing a signed Resale Certificate using your state-specific form (for a list of state-specific forms, click here.)
However, if you have your original resale certificate issued by your state or local government, we are able to accept that in lieu of the signed state-specific form. You will still need to fill out our online form here. Failure to provide all required documentation will result in a delay in processing.
Q: I need to place an order now! Can you refund my sales tax if I submit my resale certificate today?
A: Unfortunately, we are unable to refund sales tax paid on orders placed before your resale or exemption documentation has been processed. Our current processing time is 3-5 business days, so we strongly recommend submitting the documentation as soon as you can to avoid any delays.
Q: Are you able to expedite the processing of my resale documentation?
A: Due to a high volume of submissions, we are unable to expedite processing. Current processing time is 3-5 business days. We strongly recommend submitting your documents as soon as possible to avoid any delays or issues with your ordering process.
Q: What do you do with my information once I submit it?
A: First, we verify that the information you enter into our fillable form matches the information supplied on the signed state-specific form (or original resale certificate issued by your state.) If this information matches, we then contact your state to verify your information and to verify that your certificate is still valid. Then we transfer the information to our sales tax software so that your account will reflect your tax-exempt status. All information received is stored securely and never shared with anyone, except as required by law.