Sales Tax Policy
Fully automated sales tax calculation per South Dakota v. Wayfair, Inc. (585 U.S. ___ (2018)) and all applicable state nexus laws.
Chrono Swiss Watch collects and remits sales tax in full compliance with United States federal and state tax regulations, including the Streamlined Sales and Use Tax Agreement (SSUTA) and economic nexus thresholds established post-Wayfair decision.
1. Tax Collection Authority
Pursuant to 44 states with economic nexus laws (post-Wayfair), we collect sales tax based on:
- Seller's Nexus: Physical presence in Illinois + economic nexus in 44 states
- Destination-Based: Tax collected based on shipping destination per state law
- SSUTA Compliant: 24 Streamlined states + individual state requirements
- Thresholds Met: Exceed $100K sales or 200 transactions per state annually
2. Taxable Products & Exemptions
- All Watches Taxable: Luxury timepieces classified as tangible personal property
- Warranty Extensions: Taxable as service contracts in most states
- Resale Certificates: Accepted with valid state resale permit (Form CR)
- Non-Profit: Requires 501(c)(3) verification and state exemption certificate
3. Current Tax Rates by Jurisdiction
| Jurisdiction | State Rate | Avg Local Rate | Total Combined Rate |
|---|---|---|---|
| Illinois (Home State) | 6.25% | 2.75% | 9.0% |
| California | 7.25% | 2.5% | 9.75% |
| New York | 4.0% | 4.875% | 8.875% |
| Texas | 6.25% | 2.0% | 8.25% |
| Florida | 6.0% | 1.75% | 7.75% |
*Rates automatically calculated at checkout. Updated quarterly per state revenue departments.
4. Five State Tax Categories
🇺🇸 Economic Nexus States (44)
Collect sales tax if: $100K sales OR 200 transactions annually
- Alabama, Arizona, California, etc.
- Automatic calculation via AVS system
- Real-time rate lookup (5,000+ jurisdictions)
🆓 No Sales Tax States (5)
No state sales tax collected:
- Alaska, Delaware, Montana, New Hampshire, Oregon
- Local taxes may apply in some areas
- Use tax reporting required by buyer
📜 SSUTA Compliant (24 States)
Simplified tax rates and rules:
- Uniform sourcing rules
- Single administration state
- Certified software compliance
5. Tax Invoice & Documentation
- Itemized Receipts: Include tax breakdown per line item
- Tax ID Displayed: Illinois Dept of Revenue permit # visible
- Resale Certificates: Processed within 2 business days
- Tax Exempt: Requires government-issued exemption certificate
6. International Sales Tax
- No U.S. Sales Tax: International orders (VAT/duties extra)
- Export Documentation: Provided per U.S. Customs requirements
- Local VAT: Collected by destination country customs
7. Refunds & Tax Adjustments
- Full Refund: Includes all collected sales tax
- Partial Returns: Pro-rated tax refund issued
- Canceled Orders: Complete tax refund within 2 business days
- Price Adjustments: Tax recalculated on final amount
8. Legal Compliance & Audits
We maintain full compliance with:
- Federal Law: Internet Tax Freedom Act (no federal sales tax)
- Wayfair Ruling: Economic nexus established 2018
- Streamlined Sales Tax: Certified service provider status
- State Revenue Departments: Registered in 45 jurisdictions
9. Tax Support Contact
Chrono Swiss Watch Tax Compliance
📍 5132 N Harlem Ave
Harwood Heights, IL 60706
🆔 IL Dept of Revenue #ST-2026-000123