Depending on your state, you may see state sales tax added to your monthly Owner subscription. Here's when it applies, why, and how.
When sales tax applies
Owner collects state sales tax on monthly subscriptions in states where we've crossed the sales tax nexus threshold, meaning our business presence there legally requires us to collect and remit it.
States where we currently collect it:
Arizona
California, hardware sales tax only
Chicago, Illinois
Colorado, varies by county
Connecticut
District of Columbia
Hawaii
Illinois, hardware sales tax only (excluding Chicago, where SaaS is taxable)
Iowa
Kansas, hardware sales tax only
Kentucky
Louisiana
Maryland
Massachusetts
Michigan, hardware sales tax only
Minnesota, hardware sales tax only
Nebraska, hardware sales tax only
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania (public listing)
South Carolina
Tennessee
Texas
Utah
Washington
Wisconsin, hardware sales tax only
Why we collect it
Not all states tax SaaS products, but some do. Where we cross the sales tax nexus threshold, we're legally required to collect and remit it, as set out in section 2.6 of the Restaurant Participation Agreement. Think of nexus as a virtual storefront: once our presence in a state reaches a certain level, we're considered "present" there and responsible for collecting sales tax.
How it's applied
Automatic: Stripe adds the correct sales tax percentage to your invoice based on your billing zip code.
Varies by location: the percentage depends on your state and local rules.
Owner keeps $0: we don't keep any part of the sales tax, it's remitted directly to the state, city, or municipality that requires it.