WHY AM I BEING CHARGED TAX?
We are required to charge sales tax on orders shipped to states in which Clara Sunwoo has operations or where required by state law.
Some states require online sales tax based on certain parameters that are different for each individual state. Clara Sunwoo is currently required by the Internal Revenue Service (IRS) to collect sales tax in: Ohio, Michigan, Minnesota, Maryland, Louisiana, Indiana, Virginia, North Carolina, New Jersey, Massachusetts, Illinois, Georgia, Florida, and New York.
All online sales taxes collected by Clara Sunwoo LLC are paid to the state or township. Please be aware that this "ONLINE SALES TAX"/ "USE TAX" is not to be confused with any in-state clothing tax that may exist for purchases made within your state.
"Online Sales Tax" refers to any sales transactions of goods purchased from an online retailer existing outside your state and is passed per state legislation taking effect as early as 2018 and most recently as of 2021.
*Update: Due to recent updates, Pennsylvania is exempt from clothing tax charges.
“Nexus” is the requisite contact between a taxpayer and a state before the state has jurisdiction to tax the taxpayer. Prior to the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, a physical presence in the state was required for sales and use tax nexus. Post-Wayfair, the economic nexus standard, which historically applied for corporate income tax only, became the prevailing standard for sales and use tax nexus. Economic nexus looks at economic activity within a state to determine if a business has nexus.
To learn more about the new online tax rules, please click here.