Is this taxable?

As crazy as it sounds, that number is conservative.

Logic tells you that the answer to that question should be simple, if not obvious.  To determine taxability, the five questions we learned in elementary school should provide all the structure required.  "How" is easy, if the item is taxable, the seller will collect the tax and send it to the tax authority(ies).  The remaining four questions are listed in the graphic above.  The answers are binary: yes or no.  "Who", "what" and "why" are asking if the buyer, the item, or the use are taxable.  All of those can be answered with a yes or no, but the determination of each is dependent on the last question: "where".  "Where" delivers the requisite boundaries to answer the other questions.

In the US there are 50 states, the District of Columbia, and 5 territories.  Rough math on permutations suggests there should be approximately 440 combinations  (55 times 2 X 2 X 2).  So how is it possible there might be 160,000 answers?  In reality, packed into those 55 states and territories are 20,000 taxing jurisdictions.  Beyond just counties, parishes and cities, there are enterprise zones, opportunity zones, improvement zones, urban zones, "downtowns", districts, areas, tribal lands, and dozens of other locally generated designations, each with their own interpretations and priorities regarding which "consumptions" deserves to be taxed. 

It's become so complicated that it's difficult to stand in one place and understand taxability.  Move between several places during a transaction (using a cell phone), and it's somewhere between complex and impossible.

So how do we address these issues?

All of this complexity drove the founders of TAXDAI to look for answers, and we think we've found a few that can help.    We know where to start, and how to get to the end of the determination as quickly, easily, and accurately as possible.   Technologies haven't kept pace with the changes in commerce or taxation.  It also hasn't improved the experience for the stakeholders involved with indirect taxation.  It's time to change that,  and we're determined to accelerate some disruption and help develop a more collaborative, transparent, and obvious taxation experience.

We'll have a lot more to say shortly, but for now we're excited to engage with you on this journey.  Thanks for participating in this discussion.  WIth your help, we'll make taxation better, collectively... for everyone.