Are you using Action Network and paying for partner features?
If no, why the heck not? Join our next demo and learn about the benefits of our progressive toolset. Sign up here.
If yes, we have some changes coming down the pike that we want you to know about.
- We are migrating to a new billing system. This is good news.
- Washington, DC changed its tax exemption policy, so some of our partners will need to start paying sales tax. This is annoying news.
Read on for more information about each change.
First, some info on our new billing system.
We are growing up and migrating over to a new billing system. Our pricing will not change. I’m going to repeat that for good measure: our pricing will not change. The way that we charge payments each month will change, however. We will continue to charge folks based on monthly email volume, but instead of signing up for a monthly payment based on how many emails you think you’ll send out, you’ll sign up for a partnership, and we will charge you each month based on how many emails you actually send out. Then, each month you will pay a different amount based on usage. If you have more questions about our payment structure, check out our billing FAQ.
We are extremely excited about this for a number of reasons:
- It’s going to streamline the way that we calculate usage-based charges.
- This means no more painful audits twice a year.
- NO MORE AUDITS!!!
- More transparency for you around what you are using and paying each month.
- A brand new portal where you have access to past receipts and the ability to manage payments.
- Within the portal, you will be able to connect payments to partnerships, making it easier to manage multiple partnerships (cue cheering from consultants).
In phase one of the migration process, we are transitioning our systems so that new partners will be on boarded using the new billing system. At this point you’ll see a link for the billing portal in the Start Organizing menu, but you won’t have access yet (this will likely be painful and I’m sorry).
In phase two, we will be migrating over all of our existing partner payments (that’s you!). We will be in touch every step of the way to make sure there are no surprises. The two biggest changes you’ll note are access to the billing portal and a monthly payment that changes in response to your usage.
Next, some context on the new DC sales tax.
Is your group headquartered in Washington, DC?
If no, this change does not impact you. Go get ice cream and tell a dog they are special.
If yes, read on -- this change likely applies to you.
Previously, we (Action Squared) received an exemption from sales taxes as a DC-based Qualified High Technology Company, so no one in DC using our tools was subject to sales tax. That changed in August, when the District of Columbia Office of Tax and Revenue (OTR) announced that this exemption would terminate and, as of October 1, 2019, services provided by QHTCs (like Action Squared) are no longer exempt from sales and use tax.
So, short version: If your organization is based in Washington, DC and is a paid partner of Action Network, your payments to Action Network may now be subject to sales tax. The sales tax in Washington, DC is 6%, and we’re responsible for collecting that tax on your behalf and giving it to the DC government.
Are you a 501c3?
If no, unfortunately only registered 501c3s can apply for an exemption. You will see the new 6% rate reflected in your billing statements when we migrate to the new billing system.
If yes, you should apply for the DC sales tax exemption -- read on to learn more.
Most 501(c)(3) organizations qualify for a sales tax exemption, and exempt and nonprofit organizations must establish and maintain their District tax-exempt status. You can find more information on exemption and nonprofit organizations at the Office of Tax and Revenue website.
If your organization is exempt, please email Partners@ActionNetwork.org with a copy of your exemption form. If you do not know if your organization is exempt, you will need to apply for an exemption by filing Form FR-164 (Application for Exemption) with the District of Columbia Office of Tax and Revenue. You can find the details on that process here. If your organization elects to apply for an exemption, please email Partners@ActionNetwork.org and let us know.
Q: I have a federal tax exemption, is that the same thing?
No. You need to apply for the FR-164 specifically from the District and send that certificate to us in order to qualify for exemption.