"Do I have to pay sales tax on my new bicycle?"
Short answer: Maybe
Shipping it to you
We don't have to charge anyone sales tax if we are shipping the product to a destination outside of the state of Washington state. So, if you don't live in Washington, or even the United States, we don't have to charge you sales tax if we ship it to you. This is true for all companies in the United States. Within the United States, some states have made reciprocal deals with other localities (inside and outside of the US) and arranged for no-tax sales between them.
The state of Washington has reciprocal deals with:
Inside the United States
- Alaska
- Colorado
- Delaware
- Monatna
- Hew Hampshire
- Oregon
- Alaska
Outside of the United States:
- Alberta, Canada
- British Columbia, Canada (beginning July 1st 2010)
- Yukon Territory, Canada
- New Brunswick, Canada
- Newfoundland and Labrador, Canada
- Nova Scotia, Canada
- Northwest Territories
- Nunavut, Canada
- Ontario, Canada (beginning July 1st 2010)
- Quebec, Canada
- US Virgin Islands
- North Mariana Island
- Guam
- American Samoa
- Puerto Rico
Proof of residence
All we (and all other US companies) need to do is attach a copy of your proof if ID (driver's license, ID card, passport, etc...) to the invoice showing that you are a resident of one of these areas, and you can pick your bike up at our shop and not pay Washington State sales tax. If you qualify, think of it as winning the lottery. "Hurray, no sales tax!" Otherwise, think of it as one of the sure things in life.....death and taxes. You can always check with your local state government to see if they've recently entered into a deal with the state of Washington. We'd love to not charge you sales tax.
email me if you have any questions about the subject.
Here's the link to the Washington state gov. page showing the laws regarding 'qualifed non-resident' sales tax exemptions, and how retailers are to handle them. Here's an updated article from Washington state regarding British Columbia and Ontario Canada.
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