Taxes on Northerner in General
Northerner is required by law to charge applicable tobacco/nicotine tax and sales tax for online orders.
Where these taxes apply, the order total during your checkout will be updated and reflect/include taxes.
Shipping charges are in general also subject to sales tax in most states.
How is the Tax on Tobacco/Nicotine Products Calculated?
State Excise Tax (SET), also referred to as “tobacco/nicotine tax”, is applied in accordance with applicable
state and local laws.
For tobacco products, all states apply SET, however for Tobacco-Free products most states do not apply any SET.
The way SET is calculated depends on the product category (Tobacco or Tobacco-Free) and the state, and are
calculated in one of the following ways:
- based on a % of the wholesale price (cost) to Northerner
- based on Northerner selling price to the customer
- based on weight (per selling unit)
How Do We Calculate the Sales Tax on an Order?
Northerner calculates the sales tax in accordance with applicable state and local laws. Current rates can be
found here: State Sales Tax Rates - Sales Tax
Institute
Example: A customer has placed an order and their shipping address is in California:
- SET rate California = 56,93%
- Sales tax rate California = 7.25%
- Wholesale Cost per can = $3.00
- Selling price to customer = $3.99
- SET per can = $3.00 * 0,5693 = $1.71
- Sales tax per can = ($3.99 + $1.71) * 0.0725 = $0.41
Selling price to customer + SET + Sales Tax = Final price to Customer (per can): $3.99 + $1.71 + $0.41 =
$6.11
