Sales Tax Policy
Sales Tax Policy
Effective Date: August 1, 2025
At Collective Relaxation, a DBA of LeafWorldMedia LLC, we are committed to transparency and legal compliance. Below is a clear explanation of how we handle sales tax for purchases made through www.CollectiveRelaxation.com, including when tax is charged, how it’s calculated, and what your responsibilities may be as a customer.
🏠 1. Sales Tax Collection in New York State
Because LeafWorldMedia LLC (doing business as Collective Relaxation) is a registered business entity in New York State with a valid New York Sales Tax Certificate, we are required to:
-
Collect state and local sales tax on all orders shipped to addresses within New York
-
Accurately calculate sales tax based on the shipping destination’s county and locality, in accordance with New York State Department of Taxation and Finance guidelines
Example:
If your order ships to Brooklyn, NY, you will be charged the applicable New York State and New York City combined sales tax rate.
🌎 2. Sales Tax for Out-of-State Orders
If your order ships outside of New York, sales tax may or may not be applied depending on:
-
Your state’s specific tax laws
-
Whether Collective Relaxation has established sales tax nexus in your state
What is Nexus?
“Nexus” refers to a connection with a state that creates a legal obligation to collect sales tax. This can happen through:
-
A physical presence (e.g., warehouse or staff)
-
Economic presence based on sales volume or transaction count (e.g., $100,000+ in revenue or 200+ transactions/year)
Our Current Position
As of now, Collective Relaxation only collects sales tax for orders shipped within New York State. We are actively monitoring our sales across other states and will update this policy if new nexus obligations are established.
💵 3. Customer Responsibility for Use Tax (Outside NY)
If you reside outside of New York and we do not collect sales tax at checkout, your state may require you to report and pay use tax directly to your local tax authority.
What is Use Tax?
Use tax is a form of sales tax paid by the buyer when the seller does not collect it at the time of purchase.
Example:
If you live in Florida and we do not collect sales tax on your order, you may be required to report that purchase and pay use tax when you file your state tax return.
🔍 4. How Tax Is Calculated at Checkout
If sales tax applies to your order, it will be:
-
Automatically calculated during checkout
-
Based on your delivery address
-
Applied to the product subtotal and, if applicable, shipping charges
We use accurate, up-to-date tax calculation tools to ensure full compliance.
📦 5. Tax on Shipping & Handling
In New York State:
Shipping and handling fees are taxable if the items being shipped are taxable. That means the entire subtotal, including shipping, may be subject to sales tax.
In Other States:
If and when we begin collecting tax outside of New York, we will follow the specific rules of that state regarding taxability of shipping fees.
🔄 6. Tax-Exempt Orders
We currently do not process tax-exempt purchases through our online store unless arranged in advance.
If you are a reseller or represent a tax-exempt organization, please contact us before placing your order:
📧 info@CollectiveRelaxation.com
📞 929-493-4366
A valid resale or exemption certificate will be required and verified in accordance with state and federal regulations.
🔔 7. Expansion of Tax Collection
As Collective Relaxation continues to grow, we may begin collecting tax in additional states based on nexus thresholds or the opening of fulfillment centers.
If that occurs:
-
Our sales tax policy will be updated immediately
-
New tax collection will apply during checkout based on your shipping location
📫 Questions or Need Help?
If you have any questions about sales tax, your order, or anything else, please contact us:
📧 info@CollectiveRelaxation.com
📞 929-493-4366
📍 194 Woehrle Ave, Staten Island, NY 10312
Thank you for shopping with Collective Relaxation, where comfort meets quality.