Can I refuse to sell products in states that have onerous sales tax rules

UPDATED: Oct 1, 2022

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Can I refuse to sell products in states that have onerous sales tax rules

I am a small internet retailer. Connecticut says I have nexus and wants me to pay a 100 registration fee and complete extensive registration paperwork it looks like there may be additional entity registrations/fees required to remit sales tax. I have a pending sale to a Connecticut address that would represent a 5.96 sales tax collection/remittance. Can I legally cancel that sale using the registration/fee burden as the reason.

Asked on May 4, 2019 under Business Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you can't cancel the sale after the fact because you have discovered that the rules are onerous: if you accepted the sale, you must go through with it. In the future, you are free to not accept sales from certain states, but have to post those states on your website, so prospective customers have notice before trying to place their orders of where you will not sell. But for the current sale, if the customer placed an otherwise valid sale, you have to honor it.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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