Sales Tax

Sales Tax

Sales tax for orders shipped within New Jersey will appear on your online order and they are approximate. The actual taxes charged to your credit card will reflect the applicable state and local sales taxes, and will be calculated when your order is shipped.

Internet Tax Freedom Act (ITFA).
The Internet Tax Freedom Act (ITFA), which was signed into law on October 21, 1998, does not, as some have asserted, preclude sales and use taxes on any and all commerce conducted over the Internet. State and local governments are allowed to impose sales and use taxes on all such electronic sales, provided that the tax (and its rate) are the same as that which would be imposed on the transactions if they were conducted in a more traditional manner, such as over the phone or through mail order.

The IFTA is intended to prevent any jurisdiction from imposing special taxes on Internet transactions, other than such taxes that a jurisdiction already has the ability to impose (e.g., sales tax; see below). The ITFA prevents the imposition of any such taxes through October 21, 2001.

Taxation rules used by mail-order companies.
Currently, Fair Trade Coffee Company On Line uses the same taxation rules as our mail-order operation, which are based on constitutional guidelines for interstate commerce.Generally this means that states can only require companies to collect sales tax in states where they have business operations, and as a result, a company will not collect sales tax in states where they have no business operations. When someone orders something, that person will only be charged sales tax if he or she lives in a state where Fair Trade Coffee Company has physical operations. Example: If a person in Wyoming ordered coffee, the Fair Trade Coffee Company would not be required to collect sales tax because it has no business operations in Wyoming unless the order is shipped to New Jersey.

State and local government sales tax rules.
The ITFA also prohibits state and local governments from imposing taxes on Internet access charges, protects against the imposition of new tax liability for consumers and vendors involved in commercial transactions over the Internet, and creates a temporary commission to study taxation of Internet commerce and to report back to Congress in 18 months on whether the Internet ought to be taxed and, if so, how taxes can be applied without subjecting the Internet and electronic commerce to special, discriminatory, or multiple taxation.

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