Is Iowa still charging tax on shipping and handling?

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Discussion Overview

The thread discusses the recent changes regarding sales tax on shipping and handling in Iowa, with participants sharing their experiences and confusion about the implementation of these changes on their websites. There are inquiries about whether the change is effective and how to address issues with incorrect tax charges.

Discussion Character

  • Exploratory
  • Opinion-based
  • Anecdotal

Main Points Raised

  • One participant mentions receiving an email from the home office stating that Iowa no longer charges tax on shipping and handling, but their website still applies the tax.
  • Another participant expresses surprise at the news and indicates they did not receive the email regarding the tax change.
  • One participant shares the content of the email from the home office, confirming that no sales tax should be charged on shipping and handling for orders shipped to Iowa.
  • Several participants discuss their experiences with tax charges on individual orders versus orders associated with shows, noting discrepancies.
  • One participant shares their experience of contacting the home office for clarification but faced long wait times and unhelpful responses.
  • Another participant mentions that setting the shipping tax rate to 0.00% in their system resolves the issue.
  • Some participants discuss their personal connections to Iowa and plans to move there, sharing insights about their future business operations.
  • Several participants express skepticism about the likelihood of tax changes being implemented effectively in the state.
  • One participant mentions adding small tax amounts as donations rather than issuing refunds, indicating a personal approach to handling minor discrepancies.

Areas of Agreement / Disagreement

Views differ among participants regarding the clarity and implementation of the tax change, with some expressing confusion and others sharing solutions. No clear consensus emerges on the effectiveness of the communication from the home office.

Contextual Notes

Participants share personal experiences related to the tax change and its impact on their business operations, particularly in relation to orders in Iowa.

Who May Find This Useful

Consultants operating in or with customers in Iowa may find the discussion relevant, especially those encountering similar issues with shipping and handling tax charges.

mandydollie
mandydollie
Messages
433
Last Monday I got an e-mail from HO stating that Iowa no longer charges tax on shipping and handling, yet my website is still charging it for orders placed. Does anyone know if the change needs to come from the HO end or if there is something that I need to do to stop that taxing of that?

Getting tired of having to refund money for the website figuring the orders wrong
 
That's news to me. Maybe it's just in your state? I didn't get that email.
 
  • Thread starter
  • #3
I was for Iowa...

Dear Consultants,

The State of Iowa has informed us of a new policy concerning sales
taxes on our shipping and handling charges. Effective immediately for all
orders shipped to a location within the State of Iowa, no sales taxes
should be charged on shipping and handling. This policy is not
retroactive.

Therefore, you do not need to collect sales tax on shipping and
handling for orders shipped to Iowa.
 
I would contact HO and ask them. Is it charging on individual orders not associated with a show? I would imagine if you call them, they will take care of it.
 
Tech support should be bale to help you out.
 
  • Thread starter
  • #6
i've just noticed it on orders associated with shows.
 
  • Thread starter
  • #7
it's not doing it on individual orders
 
mandydollie said:
it's not doing it on individual orders
Click to expand...

I'd guess then that HO is not done updating the personal websites or their is a bug which is why its showing properly on individual orders and not on shows.
 
  • Thread starter
  • #9
I'm on the phone with HO, but the wait time is more than 15 minutes.... GREAT
 
Let us know what you find out as I have a catty show in Iowa and want to warn my host that she may need to change things.
 
  • Thread starter
  • #11
how the heck did you get a catty show in Iowa when you're in NJ? That's impressive!!!!
 
Most of my friends and family are far away from me. So I've been begging them to help me get started.
 
  • Thread starter
  • #13
that's awesome! Where in Iowa is your catty show being held?
 
I think the host lives in Sully.
 
  • Thread starter
  • #15
Well best of luck.. I'm talking to HO now, so i'll keep you posted!
 
  • Thread starter
  • #16
apparently no one at home office knows what i'm talking about. Tech support didn't even know how to help. They are now transferring me tothe lady who sent the email.
 
  • Thread starter
  • #17
ok...now i feel foolish... all you have to do is set it up in Pampered Partner to 0.00% of shipping and it's fine. The show that it was doing it on was entered as 5%
 
Thanks for posting this Amanda!!! I have a customer that I am about to ship something to in Iowa!! In fact, in the next few years I will be running my business from Iowa!!
 
  • Thread starter
  • #19
Where in Iowa will you be located
 
It's hard to say right now, obviously I am pretty far away now. We are looking at the Des Moines, Council Bluffs, or Cedar Rapids areas. Depends on where the best jobs are for my husband at the time that he retires from the military.

I grew up in Norwalk, so I am familiar with the areas. We are going to build a new home where ever we end up. We have to get through this tour and an assignment back to the States for 1-2 years first. My husband is in the techie field, that's always so up in the air!!
 
lisacb77 said:
That's news to me. Maybe it's just in your state? I didn't get that email.
Click to expand...
A TAX CUT???

:eek: :eek: :eek: :eek: :eek:

The governor of Iowa is gonna get drummed out of the association!

I can only hope that Diamond Jim Doyle, one state over in Wisconsin, gets the message from Iowa!
 
  • Thread starter
  • #22
Yeah... I'm sure that whole $.20 the state gets on shipping (in most parts) will for sure cause a riot around these parts!!!!
 
Dreamer!He got rid of planes, automobiles and other things directly attached to the Capital Expenditures. However, lowering or removing a tax would be sortta like pulling off his privates! Not to be done! It's bad enough we are getting taxed right out of the industrial age and not to mention that our taxes are high enough to compete with New York and California. And we pay $0.46 or is it $.047?, a gallon for gasline to to fix our roads. I think they use it to put pot holes in, not take them out! So if you think that a S&H tax removal should happen, I agree. But will it? I highly doubt it. This state hasn't given us a real break in over 50 years. Why start now?
 
The shipping and handling tax according to HO has been removed.
 
In that situation, when it's such a small amount, I add it as a round up donation and don't refund the money. Call me deceitful, but really--would you be that concerned about 20 cents???
 
DebbieJ said:
In that situation, when it's such a small amount, I add it as a round up donation and don't refund the money. Call me deceitful, but really--would you be that concerned about 20 cents???
Click to expand...

That is what I'm intending to do also as I have a catty show in Iowa that is closing friday and she has most of the orders in already.
 

Frequently Asked Questions

Is Iowa still charging tax on shipping and handling?

Yes, Iowa does charge sales tax on shipping and handling charges if the shipping is part of the sale of taxable goods.

Are there any exceptions to the shipping and handling tax in Iowa?

Yes, if the shipping charges are separately stated and the items being shipped are exempt from sales tax, then the shipping charges may also be exempt.

How does Iowa determine if shipping and handling is taxable?

Iowa considers shipping and handling taxable if it is part of the sale of tangible personal property. If the shipping is charged separately and the items are taxable, the shipping is also taxable.

Do I need to collect tax on shipping if I am an out-of-state seller shipping to Iowa?

If you have a nexus in Iowa, you are required to collect sales tax on both the goods sold and the shipping charges. If you do not have nexus, you generally do not need to collect Iowa sales tax.

What should I do if I believe I was incorrectly charged tax on shipping in Iowa?

If you believe you were incorrectly charged tax on shipping, you should contact the seller for clarification. If necessary, you can also reach out to the Iowa Department of Revenue for guidance on tax regulations.

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