In online direct, the actual seller of record is Trail’s End, not the scouting organization. Then, Trail’s End gives commission back from that sale to the unit and council, and prizes to the Scout if applicable. If we structured online direct sales the same way as the traditional sale, we’d be putting the onus on the scouting organization or chartering organizations to get registered in the thousands of localities around the country to get sales tax exemptions, since typically the tax is assessed at the ship-to location.
You’ll notice the amount of sales tax charged varies from order to order. That’s because every locality charges different rates, and taxability varies by items. For example, many localities view White Cheddar as a non-taxable food product, while Chocolatey Caramel Crunch is taxable as a candy product.
Sales Tax is one of the most complicated parts of the tax code, especially once you are selling online and able to ship all over the country. That’s why we take the burden of selling to the consumer; however, it means we have to charge sales tax if the applicable area determines it.