Drop is subject to sales taxes in US states where we have established a significant physical presence (or nexus). Having nexus in a state means that we have to collect sales tax from members in that state.
The amount of sales tax charged will depend on the following factors:
Current state sales tax rate
Local sales tax rates, if applicable (city or district).
Members who live in the following states are subject to sales tax when purchasing items on Drop:
- California
- New Jersey (with the exception of clothing items)
- MA (Effective Aug 1, 2019)
- WA (Effective Aug 1, 2019)
- IL (Effective Aug 1, 2019)
- CO (Effective Sep 1, 2019)
- MD (Effective Sep 1, 2019)
- MI (Effective Sep 1, 2019)
- MN (Effective Sep 1, 2019)
- NY (Effective Sep 1, 2019)
- NC (Effective Sep 1, 2019)
- OH (Effective Sep 1, 2019)
- PA (Effective Sep 1, 2019)
- TN (Effective Sep 1, 2019)
- TX (Effective Sep 1, 2019)
- WI (Effective Sep 1, 2019)
- GA (Effective Oct 2019)
- HI (Effective Oct 2019)
- IN (Effective Oct 2019)
- NV (Effective Oct 2019)
- AL (Effective Oct 2019)
- CT (Effective Oct 2019)
- SC (Effective Oct 2019)
- UT (Effective Oct 2019)
- KY (Effective Oct 2019)
- IA (Effective Oct 2019)
- LA (Effective Oct 2019)
- ME (Effective Oct 2019)
- NE (Effective Oct 2019)
- RI (Effective Oct 2019)
- VA (Effective Nov 2019)
- DC (Effective Nov 2019)
- WY (Effective February 2020)
- WV (Effective February 2020)
- VT (Effective February 2020)
- SD (Effective February 2020)
- AR (Effective February 2020)
- AZ (Effective February 2020)
- OK (Effective February 2020)
- ID (Effective November 2020)
- FL (Effective November 2020)
- KS (Effective November 2020)
- NM (Effective November 2020)
The final sales and local tax amount will be calculated when your credit card charge is authorized. You may refer to your confirmation email or your financial institution to see the final charged amount.
For tax exemption requests, please submit your certified documentation to drop.com/support.