posted on May 15, 2001 11:10:02 PM
Absolutely not!!! There are at least 2 reasons why. First, transportation is considered labor and is exempt from sales tax. Second, if the item is being shipped out of state, calling it a tax would be fraud because there is no one to remit it to. No state is allowed to tax interstate commerce. Therefore, California couldn't take the money if you offered it to them. Only the federal government is allowed to tax interstate commerce.
The light at the end of the tunnel will turn out to be an oncoming train.
posted on May 15, 2001 11:19:04 PM
In Texas, sellers are SUPPOSED to charge sales tax on the total price, INCLUDING the shipping and handling charge.
If you collect and turn in sales tax in California, contact the state agency that issued you the number and to whom you send the taxes you've collected. THEY can tell you if you're supposed to charge tax on the shipping/handling.
posted on May 16, 2001 05:44:49 AM
Just for the record, merchants in NC are required (like Texans apparently) to charge 6% NC sales tax on the total sales amount, which includes shipping if there is any. You can look on the order form of any large catalog seller with a nexus in NC. The tax line will come after the "add shipping" line.
posted on May 16, 2001 05:55:21 AM
In MI its on shipping charges as well. This really does not make any sense to me thought. When I buy postage, I don't pay tax on it so why should my customers? If you look at some of the mail order companies like Eddie Bauer you'll see which states get charged on shipping and which do not.
posted on May 16, 2001 05:58:28 AM
In New York State.....
Items being shipping within the state are charges sales tax on the shipping cost. If the item is shiopped outside the state, no sales tax. You can verify that information on NYsalestax.com
posted on May 16, 2001 08:11:05 AM
Actually, in FL you are supposed to charge sales tax on shipping. When taxable goods are invoiced, the entire invoice becomes taxable. This includes the "labor" or non-tangible portion of the invoice.
If an invoice in FL is only for intangible goods such as an inspection on your car with no repairs or some such, then labor is not taxable.
It may be the same in CA, check with your Dept of Revenue, they may even have a web site for you to look that up on.
This page has the info you need for CA, the handling portion only is taxable. The actual shipping amount is not. Then again, it depends on how it is worded in the invoice.
From the Ca State Board of Equalization page:
"Handling charges. Handling charges are generally taxable.
Combined charges. If you charge a single amount for delivery and handling (for example, the invoice shows a single amount for "postage and handling" or "shipping and handling", the portion of the charge that represents handling is generally taxable, while the portion that represents delivery may nor may not be taxable.
Note: It is important to use terms such as "delivery," "shipping," or "postage" on the invoice to represent delivery charges. A separately stated charge that says only "handling", for example, is not considered a delivery charge and the entire handling charge is taxable--even if postage or shipment charges are indicated on the package."
, the portion of the charge that represents handling is generally taxable, while the portion that represents delivery may nor may not be taxable.