We will roll out our new sales tax system to be available in 5 new states later today, Nov. 19, 2019.
Illinois, Louisiana, Mississippi, and North Carolina are all currently non-Marketplace states. This means that races have the option to turn on the sales tax system to calculate and collect sales tax and pay the race the proceeds, so they can use the summary reports to file sales tax for their states. See instructions from an earlier blog for non-Marketplace states. As usual, consult with your tax accountant for specifics in your state.
The State of Washington is our first Marketplace state, where RunSignup is assuming responsibility for collecting, reporting and remitting sales tax to the state, easing the burden on races. This will automatically go into effect today, November 19, 2019. RunSignup will turn off our legacy sales tax system for races in the state of Washington when this takes place. If you are using some other means to calculate taxes, you will need to stop that effective today since RunSignup will be handling that obligation.
Races in Washington will need to setup their sales tax parameters like exemptions and item codes appropriately. If your payment account is a nonprofit, we will automatically apply the appropriate exemption, although the State of Washington does not have an exemption for nonprofits at this time.