Sales Tax Policy

Business Name: Arc Line Mobility
Contact Email: info@arclinemobility.com
Contact Phone: +1 789 2000
Website: https://arclinemobility.com

1. Introduction

At Arc Line Mobility, we are committed to full compliance with all applicable U.S. federal and state sales tax laws. This Sales Tax Policy explains how we calculate, collect, and remit sales tax on purchases made through our website, your responsibilities as a customer, and how sales tax regulations may apply to your online purchases.

Following the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., online retailers are required to collect and remit sales tax in states where they have established “economic nexus” – even without a physical presence in that state . This policy reflects our commitment to transparency and compliance with these evolving regulations.

2. Sales Tax Collection Overview

2.1 When We Collect Sales Tax

Arc Line Mobility collects sales tax on orders shipped to states where we have established sales tax nexus, which includes:

• Physical Nexus: States where we maintain offices, warehouses, employees, or inventory 

• Economic Nexus: States where our annual sales revenue or transaction volume exceeds thresholds established by state law, even without physical presence 

2.2 Destination-Based vs. Origin-Based Taxation

Sales tax is calculated based on the shipping address you provide at checkout :

• Destination-Based States (Majority): Tax is calculated using the rate where the buyer is located (your shipping address) 

• Origin-Based States: Tax is calculated using the rate where the seller ships from (our location) 

• Hybrid States: Some states, like California, use a combination approach where different tax components are based on origin vs. destination 

Most states follow the destination-based system, meaning your local tax rate (state + county + city) will apply to your purchase .

2.3 States With No Sales Tax

Arc Line Mobility does not collect sales tax for orders shipped to the following states, as they do not impose a state-level sales tax :

• Alaska

• Delaware

• Montana

• New Hampshire

• Oregon

Note: While Alaska has no state sales tax, certain local jurisdictions may impose their own sales taxes. Alaska has enacted economic nexus laws requiring remote sellers with $100,000 or more in annual sales to collect and remit tax for member localities .

3. How Sales Tax Is Calculated

3.1 Tax Rates

Sales tax rates vary by jurisdiction and include:

• State Sales Tax: Set by each state legislature

• County Sales Tax: Imposed by county governments

• City/Municipal Sales Tax: Imposed by local cities and towns

• Special District Taxes: For transportation, schools, or other local purposes

The total sales tax rate applied to your order is the combined rate for the shipping address you provide . There are thousands of tax jurisdictions across the United States, each with its own rate that may change frequently .

3.2 Taxable vs. Non-Taxable Items

The taxability of products varies by state :

• Tangible Personal Property: Most physical goods, including electric bikes and accessories, are taxable in most states 

• Clothing: Some states exempt clothing or have thresholds below which clothing is exempt (e.g., New York exempts clothing and footwear under $110) 

• Digital Products: Taxability varies significantly by state 

Arc Line Mobility uses automated tax calculation software to determine the correct taxability of each item based on the destination state’s current laws .

3.3 Sales Tax Holidays

Some states offer temporary “sales tax holidays” during which certain items are exempt from sales tax . These typically include:

• Back-to-school items (clothing, school supplies)

• Energy-efficient products

• Disaster preparedness items

Our tax calculation system automatically adjusts for applicable sales tax holidays based on your shipping address and the items purchased .

4. Economic Nexus Thresholds by State

Based on current laws, Arc Line Mobility monitors sales activity against each state’s economic nexus thresholds. Below are key thresholds for major states where we conduct business :

Note: These thresholds are subject to change. For the most current information, we recommend checking individual state department of revenue websites or consulting a tax professional .

5. Marketplace Facilitator Sales

5.1 Marketplace Facilitator Laws

If Arc Line Mobility sells through marketplace facilitators such as Amazon, eBay, or other platforms, those facilitators may collect and remit sales tax on our behalf in accordance with state marketplace facilitator laws .

Most states with sales tax have enacted marketplace facilitator laws requiring the platform to collect and remit tax on behalf of third-party sellers . This simplifies tax compliance for sellers, though we remain responsible for understanding our overall tax footprint and for taxes on sales through other channels .

5.2 Direct Sales vs. Marketplace Sales

• Direct Sales (arclinemobility.com): Arc Line Mobility calculates, collects, and remits sales tax directly

• Marketplace Sales: The marketplace platform may handle tax collection as required by law

When you purchase directly from our website, this Sales Tax Policy applies to your transaction.

6. Exemption Certificates

6.1 Tax-Exempt Purchases

Certain organizations and transactions may be exempt from sales tax, including :

• Resale Purchases: Items purchased for resale (wholesale transactions)

• Non-Profit Organizations: Qualified 501(c)(3) organizations

• Government Entities: Federal, state, and local government agencies

• Educational Institutions: Qualified schools and universities

• Manufacturing/Processing Exemptions: Equipment used directly in manufacturing (varies by state)

6.2 How to Claim an Exemption

To make a tax-exempt purchase from Arc Line Mobility:

1. Submit Valid Exemption Certificate: Provide a valid, completed exemption certificate for your state

2. Certificate Requirements: The certificate must include:

   • Your entity’s legal name and address

   • Your sales tax permit or exemption number

   • Reason for exemption (resale, non-profit, government, etc.)

   • Authorized signature and date

3. Submission Method: Email completed certificates to info@arclinemobility.com before placing your order

6.3 Certificate Validation

We are required to validate exemption certificates at the point of sale . Exemption criteria vary by state, and only about half of U.S. states accept universal Streamlined Sales Tax (SST) certificates . We will inform you if your certificate requires additional information or cannot be accepted for a particular state.

6.4 Record Keeping

We maintain records of all exemption certificates as required by state tax authorities . If your exemption certificate expires or your tax-exempt status changes, you must notify us immediately.

7. Use Tax and Customer Responsibilities

7.1 What Is Use Tax?

Use tax is a tax on the storage, use, or consumption of tangible personal property purchased from out-of-state sellers when no sales tax was collected at the time of purchase . It is essentially the equivalent of sales tax and is paid directly to the buyer’s state.

7.2 When You May Owe Use Tax

If Arc Line Mobility does not collect sales tax on your purchase (for example, because we have not yet established nexus in your state), you may be legally required to report and pay use tax directly to your state’s tax authority .

Many states with sales tax have corresponding use tax laws requiring buyers to self-assess and remit tax on out-of-state purchases .

7.3 State Notice and Report Laws

Several states have enacted “notice and report” laws requiring non-collecting retailers to notify customers of their use tax obligations . These states include:

If required by law, we will provide appropriate notices to customers in these states regarding potential use tax obligations.

7.4 Customer Responsibility

As a customer, you are ultimately responsible for paying all applicable taxes on your purchases, including use tax if sales tax was not collected at the time of purchase . We recommend consulting with a tax professional or your state’s department of revenue to understand your use tax obligations.

8. International Orders

8.1 Current Shipping Limitations

Arc Line Mobility currently ships only within the United States and does not process international orders .

8.2 Future International Expansion

If we expand to international shipping in the future, customers will be responsible for all applicable:

• Value-Added Tax (VAT)

• Goods and Services Tax (GST)

• Customs duties and import taxes

• Brokerage fees

These fees are separate from sales tax and are collected by the destination country’s customs authority .

9. Tax-Exclusive Pricing

9.1 Displayed Prices

All product prices displayed on the Arc Line Mobility website are exclusive of applicable sales tax unless otherwise stated. Sales tax is calculated and added to your order total during checkout based on your shipping address .

9.2 Checkout Transparency

At checkout, you will see:

• Subtotal of your items

• Estimated shipping costs

• Calculated sales tax (based on shipping address)

• Order total including all taxes and fees

This transparent breakdown ensures you understand exactly what you are being charged before completing your purchase.

10. Changes to Tax Laws

10.1 Regulatory Changes

Sales tax laws, rates, and economic nexus thresholds change frequently . Recent changes include:

• As of January 1, 2025, 14 states (including California) eliminated the 200-transaction threshold in favor of purely monetary measures for establishing nexus 

• Alaska removed the transaction threshold from economic nexus requirements effective January 1, 2025 

• Indiana removed its 200-transaction threshold effective March 29, 2024 

10.2 How We Adapt

Arc Line Mobility monitors sales tax developments and updates our tax calculation systems accordingly . However, we cannot guarantee that our systems will immediately reflect every change, particularly in jurisdictions with frequently changing rates.

10.3 Policy Updates

We reserve the right to update this Sales Tax Policy at any time to reflect changes in:

• Applicable laws and regulations

• Our business operations

• Economic nexus thresholds

• Tax rates and jurisdictional rules

The most current version of this policy will always be available on our website with the “Last Updated” date .

11. Accuracy and Discrepancies

11.1 Tax Calculation Accuracy

We strive to calculate and collect the correct amount of sales tax on every transaction. However, due to the complexity of tax laws and the large number of taxing jurisdictions, errors may occasionally occur .

11.2 Discrepancy Resolution

If you believe the sales tax charged on your order is incorrect:

1. Contact Us Immediately: Email info@arclinemobility.com with your order number and details of the discrepancy

2. Provide Information: Include the shipping address used and any supporting documentation

3. Review Process: We will review the transaction and, if an error is confirmed, process an adjustment or refund as appropriate

11.3 Overcharged Tax

If we determine that you were overcharged sales tax, we will process a refund for the overcharged amount to your original payment method.

11.4 Undercharged Tax

If we determine that sales tax was undercharged, we reserve the right to bill you for the additional amount due. In such cases, we will contact you with an explanation and provide options for payment.

12. Refunds and Tax Adjustments

12.1 Tax on Returned Items

When you return an item in accordance with our Refund & Return Policy:

• Sales Tax Refund: The sales tax originally collected on the returned item will be refunded to you, provided the refund is processed in the same tax jurisdiction and period 

• Partial Refunds: If only part of an order is returned, sales tax will be refunded proportionally

• Restocking Fees: Any restocking fees applied are generally not subject to sales tax 

12.2 Processing Time

Tax refunds are processed simultaneously with product refunds and will appear on your statement according to your financial institution’s processing times.

13. Contact Information

If you have any questions about this Sales Tax Policy, sales tax collection on your order, or exemption certificates, please contact us:

Email: info@arclinemobility.com
Phone: +1 789 2000
Hours: Monday-Friday, 9:00 AM – 5:00 PM (Eastern Time)

For exemption certificate submissions, please include “Exemption Certificate” in your email subject line and attach the completed certificate.

Appendix: State Sales Tax Resources

For customers who wish to learn more about their state’s sales and use tax laws, we recommend visiting your state’s Department of Revenue website:

Note: We are not affiliated with any state tax authority and provide these references for your convenience only.

By making a purchase from Arc Line Mobility, you acknowledge that you have read, understood, and agree to be bound by this Sales Tax Policy.