Taxes on Nicokick in general:
Nicokick 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 tobacco/nicotine tax 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:
How is the sales tax calculated?
- based on a % of the wholesale price (cost) to Nicokick
- based on Nicokick selling price to the customer
- based on weight (per selling unit)
Nicokick calculates the sales tax in accordance with applicable state and local laws. Current rates can be found here:
Example: Customer 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) = $0.41
Selling price to customer + SET + Sales Tax = Final price to Customer (per can):
$3.99 + $1.71 + $0.41 = $6.11