Thank you for getting in touch. Generally, the Shopify tax system will only charge sales tax to US customers in states where you have a presence that is inputted into Shopify's tax settings. I would presume that your store's address is based in Colorado, meaning that the system recognizes that you have a tax nexus here and is charging Colorado-based customers accordingly.
If you do not have a tax nexus in a state, you likely won't need to collect and pay sales taxes for orders placed from that state. A nexus is usually defined by having employees or locations in a state; we've more information on how this is defined here. We also offer a more comprehensive explanation of setting up US taxes on Shopify that you may wish to check out.
Do you have other locations or employees working in other states, or are you and your business only based out of Colorado?
Victor | Shopify Social Care
Would like some additional help here.
We have an Economic Nexus in 46 States. Only 12 of which require us to collect State, County and Local. The other 34 States we only need collect the State Tax.
I've scoured the forums looking for a solution to this and I cannot locate one. The Tax Override settings don't work for anything but a specific zip code.
Surely Shopify doesn't expect us to enter all of the Zip Code in every State to calculate an override. There are 39,917 zip codes in the USA.
Does anyone have any suggestions.
I've entered one zip code per State and have all 46 set up. But, for example, for New York we should only be charging the State Tax - not the County and Local. I've entered a Tax Override for New York, but the override is not applying Statewide - it is only applying to the locality for the zip code I used.
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