State sales tax

As you know, each state has varying sales tax laws.  Our accounting firm has advised us that we must collect and pass through state sales tax on transactions where the paying party is located in the following states:

  • Connecticut
  • Mississippi
  • Pennsylvania
  • South Carolina 
  • Utah
  • Washington

After July 15th, 2015, if the paying party’s business address is located in one of the above states, the Mercury Network transaction fee will automatically have sales tax applied.  If the paying party is not located in any of the above states, no sales tax will be applied.  The list of applicable states may grow over time, but we will send notifications to affected states.  

Below is an FAQ, but if you have any additional questions don't hesitate to reach out to info@MercuryVMP.com.
 
 

FAQ

Which states are subject to sales tax now?
The list of states affected now is listed below.  As regulations change, this list could expand. 

  • Mississippi
  • Connecticut
  • Pennsylvania
  • Utah
  • Washington
  • South Carolina 

When will sales tax be applied?
The sales tax will be applied on transaction fees for orders where the paying entity is located in one of the states listed above.  In other words, if the party paying the transaction fee is located in Pennsylvania, sales tax will be applied.  

If you place orders for appraisals and cover the transaction fees, you will see sales tax applied when you place the order like this: 

If you're an appraiser or vendor, responsible for transaction fees, you will see tax applied when you accept an order:

What is the sales tax rate for each state, as of July 15, 2015?
These are each state's sales tax rates as we understand them.  If you see an issue, please let us know at info@MercuryVMP.com. 

CT  1%
MS  7%
PA  6% (updated)
SC  6%  (updated)
UT  6.5%
WA  7%

Why do you have to collect sales tax?
Many states have unclear laws when it comes to sales tax applicability for software transactions like Mercury Network. Therefore, we engaged an accounting firm to audit sales tax laws in relevant states.  The audit determined the laws in the listed states require the collection and payment of sales tax for certain Mercury Network products.

Why are you collecting sales tax on transaction fees?  We don’t usually pay sales tax on services.
The sales tax does not apply to the appraisal being performed.  The sales tax is applied to the Mercury Network transaction fee, which some states classify as taxable SaaS (Software as a Service) or PaaS (Platform as a Service).   While it’s not entirely clear in most states, the states where we determined that we need to pay sales tax have shown some precedent for charging tax on SaaS or PaaS fee models.
 
My state is not listed.  Does this mean sales tax doesn’t apply to me?  
For now, sales tax will only be applied on transaction fees where the paying entity is located in one of the states listed.  In other words, if the entity paying for the transaction fee is located in Utah, sales tax will be applied.  

What if the order is cancelled? 
Just like all cancelled orders, your transaction fee and the sales tax applied will both be refunded with 24-48 hours. 
 
Are you raising your transaction fees?
No, but we must collect and pass through sales tax to comply with the laws in specific states.  All sales tax monies collected are paid to the appropriate state. 

Are all products affected?
Not all products are affected. Below is a table showing which products are subject to sales tax in each state:

Taxable products

Transaction fees for Mercury Network, EVF, SureReceipts, BPO, and AQM orders

Transaction fees for Mercury Network, EVF, SureReceipts, and BPO orders

Transaction fees for Mercury Network, EVF, SureReceipts, and BPO orders

Transaction fees for Mercury Network, EVF, SureReceipts, BPO, and AQM orders

Transaction fees for Mercury Network, EVF, SureReceipts, and BPO orders

Transaction fees for Mercury Network, EVF, SureReceipts, BPO, and AQM orders

State

CT

MS

PA

SC

UT

WA

If you have any additional questions, don't hesitate to reach out to info@MercuryVMP.com.