Taxable Services
Cofactr provides a number of services that are subject to sales tax in some states.
Our platform subscription fees are taxable as SaaS in some states
Purchase of parts using Cofactr is taxable tangible personal property in most states
The logistics services we provide is a taxable service in New York State, where our logistics facility is located
When will I have to pay sales tax?
Your State | Subscription | Parts Shipped To Cofactr | Parts Shipped Directly To You | Logistics |
MA | Yes* | Yes* | Yes* | Yes* |
NY | Yes* | Yes* | Yes* | Yes* |
TX | Yes* | Yes* | Yes* | Yes* |
CA | No | Yes* | Yes* | Yes* |
NC | No | Yes* | Yes* | Yes* |
CO | Depends on the local municipality | Yes* | Yes* | Yes* |
Other States | Currently No | Yes* | Depends | Yes* |
*Unless you have a valid exemption on file
If I'm not a New York company, why do I have to pay New York sales tax?
When you purchase parts and choose to have them shipped to the Cofactr logistics facility, New York is the site of that transaction for Sales Tax purposes, regardless of the state that your business is located. The good news is that New York does NOT require you to be registered to do business in New York to provide a New York tax exemption, so if you are tax exempt in your home state, it is very likely that you are tax exempt in New York as well.
I have a Sales Tax exemption in New York. What do I do?
If you already have one of the following exemption certificates, please email it to [email protected]:
NY ST-119.1 Exempt Organization Exempt Purchase Certificate
Please make sure any certificate you send us lists Cofactr Inc as the seller and is a blanket certificate.
You can also generate and submit an exemption directly to us here: https://app.certexpress.com/?c=6a64426c717568575a752f6f41516765784e5234:ecb65915c2d3b60b22ad88bcedb0fbb0
Please Note: Most of these exemptions do not apply to SaaS, so you will generally still be charged Sales Tax on your platform subscription fees.
I have a Sales Tax exemption in a different state. What do I do?
If you are purchasing parts for resale or for resale as a physical component part of tangible personal property, complete a NY ST-120 Resale Certificate here:
If your purchases are exempt for a different reason such as R&D, complete a NY ST-121 Exempt Use Certificate here:
You can also generate and submit an exemption directly to us here: https://app.certexpress.com/?c=6a64426c717568575a752f6f41516765784e5234:ecb65915c2d3b60b22ad88bcedb0fbb0
Please Note: Most of these exemptions do not apply to SaaS, so you will generally still be charged Sales Tax on your platform subscription fees if you are located in Texas, Massachusetts, New York, or parts of Colorado.
Important Legal Disclaimer
This information is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You should not act on the basis of this content without consulting your own relevant lawyers and experts first.