Ever wanted to learn about sales tax nexus?
Me neither. Unfortunately, I did anyway.
Sales Tax Nexus Explained (A.k.a. a Natural Sleep Inducer)
Sales tax nexus is a series of criteria one must meet before enforcing sales tax on products. You automatically establish nexus in the state where you live, but you can also expand into other states by making lots of sales, leasing an office, etc. (If you’re interested in this sort of thing, I learned tons from the TaxJar Blog.)
Still Awake?
Okay, phew.
Anyway, why am I telling you this? Because I learned all about it for my ecommerce store.
You might’ve noticed that my Books page and its sub-pages have changed. Most notably, you’ll see a little purple button labeled “Add to cart” and a menu item labeled “Checkout.” Try clicking those buttons. You’ll find you can purchase ebooks directly from this website!
Why Build an Ecommerce Platform?
Or more pertinently, why hazard the murky waters of sales tax? A few reasons.
1. Easier Buying
Time was, when you clicked a button on this site, you were redirected to buy on another site. No longer. Instead, just add your book to your cart, enter your credit card info (it’s secure with Woocommerce Payments, Stripe, or PayPal), then buy.
(For the record, I still have links to my books on Amazon, Barnes & Noble, and Smashwords.)
2. Better Cuts
Amazon is the most generous retailer for author royalties, but even they claim a 30% cut of ebook purchases. The payment portals on my site take between 2.9 and 5%. Therefore, I make more on each sale, while fine readers like you need not spend extra.
3. New Short Stories!
Most exciting of all, this platform is perfect for distributing short stories like this one:
Cover designed by the author
I meant to share this with you last week, but I hibernated for seven days after reading too much tax documentation. Here’s what it’s about:
How many thieves does it take to rob a dragon? Five—and that’s not a punchline.
In Big Riches, Fine Wine, and a Pinch of Dragonsbane, an old man, a young girl, a coward, and a pair of twins attempt the heist of a lifetime. Their target: a hoard of treasure. Its guardian: a dragon with a death wish. Will the thieves succeed, or will they meet a fiery (and crunchy) end?
A hybrid of farce and high fantasy, this short story proves that even the best fellowships aren’t immune to a few blunders. Hope you brought your dragonsbane.
If that sounds fun to you, you can read Big Riches, Fine Wine, and a Pinch of Dragonsbane for $0.99. Hope you dig it!
Epilogue to the Sales Tax Thing
I contacted several financial experts, both individuals and entities, plus the dreaded New York State Department of Taxation and Finance (it actually wasn’t that bad). Finally, I got my answer. Drumroll, please…
Ebooks aren’t taxable in New York state. And since I’m not selling nearly enough in other states to warrant taxation, all that research could’ve been better spent doing something else. Like playing Magic, for instance.
Nonetheless, I’m glad I get to share my ecommerce store with you. Try it out and see what you think.
Kyle A. Massa is a speculative fiction author living somewhere in upstate New York with his wife, their cats, and their dog. He has written two books and numerous short stories, both published and yet-to-be published. He enjoys unusual narrative structures, multiple POVs, and stories that make people laugh.
