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)