IMPORTANT UPDATE

Starting March 2021, California, Maryland and Rhode Island will be joining the list of states where Sales Tax will be applied to monthly subscription payments.

This is a legal obligation for IDX Broker based on recent changes to multistate sales tax compliance rules. As a result, states can impose sales taxes on online retailers and subscription services even if they don’t have a physical presence in the state.

There are several references available online for your review that support this action (including, but not limited to, South Dakota v. Wayfair, Inc. ).

Based on these new laws, we are required to calculate, collect, and remit sales tax for clients in applicable states:

As of 3/18/2021

Please refer to The Sales Tax Institute for the applicable tax rate in your area.

What this means for you - if your client is the payee:

If your client is the payee on their subscription and remits payment directly to IDX Broker via their credit card, they will be liable for any taxes their state levies for this service.

IDX Broker will be notifying these clients that their invoices will include taxes owed. Once we start collecting tax in these states, you do not need to take any action.

What this means for you - if you are the payee:

If you are the payee for accounts that receive service in these states, you are responsible for all charges associated with these accounts.

We acknowledge that this change affects your business, and that you may have items to adjust as a result.

Alternatively, if you wish to switch from billing control, please contact developers@idxbroker.com and we would be happy to assist you.

For more information on how this adjustment may impact you and your clients, please contact developers@idxbroker.com. For any other questions about how Internet Sales Tax may affect you, we recommend consulting with your tax advisor.

Thank you for being a part of the IDX Broker community.