We will try to provide information as directly as possible, but remember that RunSignup does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. RunSignup makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the information provided in this blog.
Our new Sales Tax System is rolling out throughout November and December. We know it’s a complex topic, so we are providing as much information as possible to help you understand how we are helping races comply with complex sales tax laws. This includes the 37 states with new Marketplace Facilitator laws where RunSignup will collect, report and file sales tax returns on your behalf. Additionally we are providing information on how you can use the new system to collect taxes in non-Marketplace States.
Miss the webinar? No problem. You can watch the recording, check out the slides, read a summary of the Q&A, and review relevant links.
Overview & Resources
We have a number of blogs and resources to help you wrap your head around the roll-out of sales tax on our platform.
- Taxability Matrix: This represents our best understanding of the tax requirements of each state, and these determinations will be reflected in our new sales tax system. If you believe your state taxes an item differently than our matrix shows, please send an email with specific relevant documentation from the state to firstname.lastname@example.org.
- Why Now? A 2018 US Supreme Court case against Wayfair, Inc., changed the requirements for seeking sales tax from out-of-state sellers.
- Marketplace Facilitator States: Following the Wayfair case, many states enacted “Marketplace Facilitator” laws requiring online sellers (like Amazon, Ebay, and RunSignup) to collect and remit state sales tax on behalf of the sellers (in our case, the races) on their platform.
- A Summary: For the “short” version of the above, check out this blog summary of our current understanding and implementation of sales tax.
- Detailed Technical Implementation: The Sales Tax system is not yet generally available – you will see the tab on your dashboard, but it cannot yet be enabled. In the meantime, this blog will give you a preview of what to expect with implementation.
- Previous Q&A: Didn’t get all your questions answered in the Q&A from yesterday’s webinar? We have more from our first webinar in August, as well as a recording and recap of the August webinar.
Estimated Release Timeline
- Live Now: Private Beta (all races can see Sales Tax Beta on their dashboard, but there is limited ability to enable it). Races can correct or specify their specific taxability address beginning now.
- November 4: Limited Beta (nonprofits with exemptions will be able to set their exemption status in advance of the full release)
- November 12-20: Release 1 (the collection of sales tax in all Marketplace States is rolled out state by state; each state will get a heads up before they are live. All races can use the system to collect in non-Marketplace states)
- December 15: Final Release (all exempt entities will need to update their information, and all types RunSignup transactions, including tickets and membership, will be covered)
- Nonprofits as sellers are not exempt in all states. When a nonprofit lists a race or event on RunSignup they are a seller, not a buyer. Nonprofit buyer exemption forms do not make you exempt as a seller. In states in which a nonprofit is exempt as a seller, they will need to acknowledge our Exemption Form which details the specific criteria to take the exemption in that state. Explicit acknowledgement and taking liability for improperly claiming exempt status will be required for each entity and race.
- With Release 1, we will automatically set all races that are using a RunSignup payment account that was set up as a nonprofit entity type as exempt from sales tax in states where a sellers exemption is available (this is not all states). Each nonprofit will need to fill out their exemption form before December 15th to retain that exemption status.
- Important Note: If you help, manage, or time a nonprofit race and are currently collecting the proceeds from that race into your own payment account, the race will not be exempt from sales tax. You need to use a payment account owned by the nonprofit to be exempt (in states with exemptions for nonprofits).