This Sales Tax Policy explains when and how Propane Tank Traders collects sales tax, how tax is calculated on your order, and how qualifying businesses and organizations can make tax-exempt purchases. We are committed to charging tax accurately and transparently, and to showing you any tax that applies before you pay — never as a surprise after the fact.
1. Overview
Sales tax in the United States is governed by individual state and local laws. A retailer is generally required to collect sales tax only in states where it has a tax obligation, known as “nexus.” Where we are required to collect, tax is added automatically at checkout based on your shipping address and the applicable rate for that destination. Where we are not required to collect, no tax is added by us — though, as explained below, you may still owe “use tax” directly to your own state.
2. Where We Collect Sales Tax
Propane Tank Traders is headquartered in Little Rock, Arkansas. We collect Arkansas state and applicable local (city and county) sales tax on taxable orders shipped to addresses within Arkansas, in accordance with the rules of the Arkansas Department of Finance and Administration.
As our business grows, economic-nexus thresholds established under the U.S. Supreme Court’s South Dakota v. Wayfair decision may require us to begin collecting tax in additional states. If and when that happens, the appropriate tax will be calculated and displayed automatically at checkout for orders shipped to those states. You never need to track these changes yourself — our checkout always reflects the current requirement for your destination.
3. How Sales Tax Is Calculated
Where tax applies, it is destination-based, meaning the rate is determined by the address your tank is shipped to rather than where we are located. Our checkout system combines the relevant state, county, city, and special-district rates that apply to your delivery address to arrive at the correct total. The exact amount is itemized on the checkout page and on your receipt so you can see precisely what you are paying and why.
4. Tax on Shipping & Freight Charges
Some states treat shipping and freight charges as part of the taxable sale, while others do not. Our system applies the correct treatment for each destination automatically. In states where freight is taxable, our flat $350 freight fee may be included in the taxable amount; in states where it is not, only the tank price is taxed. Again, the final figure shown at checkout reflects the correct calculation for your order.
5. Tax-Exempt & Resale Purchases
If you are buying for resale or your organization is otherwise exempt from sales tax, you may qualify to purchase without tax. To set this up:
- Email a valid, fully completed resale certificate or exemption certificate for the destination state to sales@propanetanktraders.com.
- Include your order number (or let us know you are about to place an order) and the business or organization name exactly as it appears on the certificate.
- We will review and verify the certificate. Once approved, we will process your order as tax-exempt, or refund tax already collected if the order was placed before approval.
For the smoothest experience, please send your certificate before placing your order. We are required to keep valid exemption documentation on file, and we cannot retroactively remove tax without it.
6. Tax-Exempt Organizations
Qualifying entities — such as government agencies, registered non-profit and charitable organizations, schools, and certain agricultural buyers — may be eligible for exemption under their state’s rules. The specific documentation required varies by state and by exemption type. Contact us and we will tell you exactly what we need to set up your tax-exempt purchase.
7. Orders Shipped to States Where We Do Not Collect (Use Tax)
If we are not required to collect sales tax for your shipping destination, your order will not include tax from us. However, most states impose a corresponding “use tax” on taxable goods purchased from out-of-state sellers. In those cases, the responsibility to report and pay use tax directly to your state’s tax authority rests with you, the buyer. We recommend keeping your order confirmation for your records, and consulting your state’s department of revenue if you have questions about use tax obligations.
8. Refunds & Tax Adjustments
If you return a tank in accordance with our Return & Refund Policy, any sales tax you paid on the returned item will be refunded along with the eligible purchase amount. If tax was charged in error — for example, an approved exemption that had not yet been applied — we will promptly refund the tax once your exemption is verified.
9. Rate Accuracy & Changes
State and local tax rates change periodically. We use up-to-date rate data to calculate tax at the moment you check out, so the amount charged reflects the rate in effect on the date of your purchase. Because rates can change between visits, the tax shown on a saved cart or an old quote may differ from the amount calculated when you actually complete your order.
10. Invoices & Record Keeping
Every order includes an itemized receipt showing the tank price, freight, and any sales tax collected. Business customers who need a detailed tax invoice for accounting or reimbursement can request one at any time by emailing us your order number.
11. Disclaimer
This page is provided for general informational purposes to help you understand how we handle sales tax. It is not tax or legal advice. Tax rules are complex and depend on your specific circumstances and jurisdiction. For advice about your own tax obligations — including resale, exemption, or use-tax questions — please consult a qualified tax professional or your state’s department of revenue.
12. Questions About Sales Tax
If you have any questions about sales tax on your order, or you need to arrange a tax-exempt or resale purchase, our team is here to help:
- Phone: (501) 218-9328 (Mon–Fri, 9:00 AM – 6:00 PM CST)
- Email: sales@propanetanktraders.com
- Mail: Propane Tank Traders, 4509 W Dixon Rd, Little Rock, AR 72206
Our team is happy to help — reach out any time.