Drop is subject to sales taxes in states where we have established a significant physical presence (or nexus). Having nexus in a state means that we have to collect sales tax from members in that state.
The amount of sales tax charged will depend on the following factors:
- Current state sales tax rate
- Local sales tax rates, if applicable (city or district)
Members who live in the following states are subject to sales tax when purchasing items on Drop:
- New Jersey (with the exception of clothing items)
Effective July 10, 2019, customers in California and New Jersey will see applicable estimated local taxes added at checkout. The final sales and local tax amount will be calculated when your credit card charge is authorized. You may refer to your confirmation email or your financial institution to see the final charged amount.