Is It Illegal to Tax Shipping and Handling in Colorado?

[cmdtrgd]

I did a catalog show in Colorado (I live in Idaho) and just got the order form mailed to me from the host from one of the customers. She noted that it was illegal to tax Shipping and Handling. In the state of Colorado, it must be taxed, so I don't know what she is talking about. Anyhoo, I can show her that from our website, but I want to be able to show her from a state of Colorado website - anyone know which website to point her towards? I can't seem to find one!

 

[dwyerkim]

Well I'm in Colorado and I can tell you that is just not true. I would just go back to her and tell her that shipping and handling are taxed in all states except (you can get the list off of the OOF). I have tried to look up tax rates for Colorado before and it is very confusing going through the states web pages. Could you ask her where she got her "illegal" information from? Shipping and handling is basically viewed as a "service" and hence is taxed, just like other services (hair salon, restaurant, etc). That is my understanding of it anyway. Good luck, but yes, it is definitely taxed here!

 

[Geekgirl69]

This is from Windsor Colorado, will this help? http://www.ci.windsor.co.us/pdf/faq/salestaxshippingchargestaxableorexempt.pdfLynda

 

[cmdtrgd]

That might work as she is near Windsor...however, I wanted something a little more along the lines of the state.

 

[Geekgirl69]

Well the Windsor page did explain the premise behind responsibility equaling taxation, I think that applies pretty much across the board. Like when I order from ebay, if it arrives broken the seller is not responsible, hence no tax on shipping.

 

[Geekgirl69]

Found ithttp://www.revenue.state.co.us/taxstatutesregs/salesindex/transportationQA1.html

 

[chefann]

You can tell her that you go by the information from HO and have to remit the tax through them. And if she would like to file with her state for a refund of that tax, she can.
(I know that it's one of the taxable shipping states, so she wouldn't actually get it back, but it takes the responsibility off you and puts it on her.)

 

[raebates]

I know the s/h is always taxed in Indiana, but a few times a year I get someone who insists it's illegal. Ann's wording is pretty close to what I say. Thankfully, I've never had a host refuse to collect that portion of the tax. The funny thing is that in 3 1/2 years I've only had one person who didn't pay that part of the tax. They complain to the host, but they still pay it.

 

[feather18]

Yeah! I had a lady complain about that too!! I didnt know at the time(my very first opening show) but i just told her that same thing.. Oh and alot of the crowd was backing me up saying that that is how it is when you buy something Online!! Luckly it wasnt too bad!!

 

[cmdtrgd]

In Idaho you can't tax shipping and handling, but you wouldn't believe how many people try to!!! If I can't get ahold of them before submitting the show, I just put it as a round up donation.I'm really looking for something that says "you have to tax shipping and handling in CO" without saying "nya nya nya nya nya"

 

[BethCooks4U]

I just had a host's mom call me and question the tax on shipping. She was outraged! I explained that it's state law and while I don't agree with it personally (and I don't) I am required to charge it. She accepted that.

I love that article from that town (Windsor, CO?) that explained that if the shipping company retains responsibility for the product until it gets to the customer it is taxable! I think I'll use that when questioned in the future - customers do expect us to make good if something's wrong with their product (as we should) so it makes a good arguement in my mind.

 

[BethCooks4U]

In Idaho you can't tax shipping and handling, but you wouldn't believe how many people try to!!! If I can't get ahold of them before submitting the show, I just put it as a round up donation.

I'm really looking for something that says "you have to tax shipping and handling in CO" without saying "nya nya nya nya nya"

The statement on the PC order form states "shipping and handling charges are taxable in all states except: AK, DC, DE, IA, ID, IL, MA, MT, NH, NJ, OH, OK, OR, UT and WY." CO is not on the list that is excepted! As far as I am concerned that's proof enough for me. If she continues to argue it tell her that she should call 1-888-OUR-CHEF and have them explain how it's legal to her. You represent PC and have no control over what the individual states' laws are. Pampered Chef can give her the legal answer.

I don't think the $0.27 (or whatever their tax rate is) is worth the frustration and effort!





Edit: I thought there were way less states than that not charging that tax. ...hmmm I wonder if more are changing the laws about this or am I just remembering wrong - I know I always said "most states charge ..." That's still true but I don't think the number of states that don't charge it was 15 last time I paid attention.