I have set up collect sales taxes in NY state (NYC in particular so 8.875%) and the taxes are being calculated at the checkout but not collected by sShopify.
Clearly I am having to pay taxes I never collected.
I have reached out to Shopify Support however it seems impossible to get a proper answer so far?
It sounds like you're comment regarding "sales over some ridiculous number like a million dollars or something..." is referring to economic nexus laws so I'd like to provide a little clarification. Please understand my intent is to help business owners become informed about various aspects of sales tax rules across the states so that they may then make informed business decisions about their sales tax obligations and responsibilities.
As you can see by the last bullet point it is possible for a business to have a registration, collection and filing requirement in a state with sales of much less than $100,000 simply because they made over 200 transactions in the state. I also recognize that the risk to the business owner for not registering may be much less than the administrative costs incurred by the business to register, collect and report a given state's sales tax. This would need to be taken into account by the business owner along with their risk for being located by a given state where they may have established economic nexus, meaning they have exceeded the small seller exception.
Hope you find this explanation helpful as well as anyone else reviewing it in the future.