Ohio Shipping Taxed as of March 1 - Bummer!

[pkd09]

Did you read the News Wire that we received today? Ohio shipping is taxed as of March 1. Would have been nice had they let us know BEFORE now since my March host packets are out with No tax on shipping outside order forms. UGGG!! Guess I'll be eating that difference

 

[pchockeymom]

Just notify your hosts to change the tax charge. It's not a PC thing, it would be an Ohio tax law going into effect.

 

[esavvymom]

Dont eat the cost. It will just be a few cents anyway.

 

[byrd1956]

So, my husband says taxing shipping & handling is against the law. We live in Ohio, so did our law change?

 

[esavvymom]

According to the newswire, apparently yes. It says it is to comply with state laws. Many states do this, so it does not surprise me that the remaining states are starting it. PC has nothing to gain from it. I was actually looking at forum posts on tax sites saying it was done years ago, so maybe PC is just now catching up with the law?I would NOT make light of it with customers unless they ask. Then just matter of factly explain state laws dictate it.

 

[Intrepid_Chef]

Ohio's law did not change. In fact, I have always wondered why we didn't tax shipping because EVERY OTHER HOME PARTY PLAN charges tax on shipping, and says it's because of state law. I wondered why were were immune.I think we were always wrong and finally realized it.The good news is that if somebody has ordered before, they will not blink because they are used to paying this.But be aware ... this apparently also applies to February shows submitted in March!

 

[byrd1956]

so will this actually update in P3 and on the website on Mar. 1?
I just sent an e-mail to all my March hosts and the one Feb. host that has not closed her show.

 

[byrd1956]

Just found this on the Ohio Dept. of Taxation website:
ST 2007-02 - Sales and Use Tax: “Delivery Charges” a Part of the “Price” of a Sale – Issued May, 2007

The purpose of this release is to clarify the treatment of delivery charges which became part of the “price” of a sale effective August 1, 2003 under R.C. 5739.01(H)(1)(a)(iv). Questions have arisen regarding the treatment of such charges and this release will clarify how such charges should be treated.

Delivery charges

Pursuant to R.C. 5739.02, the Ohio sales tax applies to all retail sales in this state. R.C. 5739.01(B) defines “sale” for Ohio sales tax purposes to include any transfer of title, possession, or a right to use tangible personal property in this state or the provision of a designated taxable service in this state for a consideration.

R.C. 5741.02(A) levies the Ohio use tax on any storage, use or consumption of tangible personal property or receipt of the benefit of a taxable service in Ohio.

Pursuant to R.C. 5739.01(H)(1)(a), incorporated into the use tax definition of price in R.C. 5741.01(G)(1), the price of a sale means (in pertinent part):

(H)(1)(a) "Price," except as provided in divisions (H)(2) and (3) of this section, means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for any of the following:

(iv) On and after August 1, 2003, delivery charges. As used in this division, "delivery charges" means charges by the vendor for preparation and delivery to a location designated by the consumer of tangible personal property or a service, including transportation, shipping, postage, handling, crating, and packing * * *.

Accordingly, the “delivery charges” referred to in this section of the Ohio Revised Code are specifically included as part of the “price” of a sale and are not a separately enumerated taxable service for sales and use tax purposes. Vendors and sellers must charge tax on both the amount associated with the property being sold and the “delivery charges” as defined in R.C. 5739.01(H)(1)(a)(iv). It does not matter whether the charge for the property sold is separately stated on the invoice from the delivery charge or whether the delivery charge is included in the line item price on the invoice for the property

 

[pchefjaneen]

I live in OH and have a Masters Degree in Taxation. OH has charged tax on shipping charges for quite some time now, PC just never "agreed" with this until now it appears. I have been selling since 2004 and have always questioned this. It appears that probably they have heard from the state over the years on this and probably went through a sales tax audit that has made them decide to correct their position.

 

[byrd1956]

Trying to finish a Feb. show, but will have to send it in Mar. cause the girl gave me the $ tonight at church. Since the tax shows not on shipping I will have to wait til tomorrow to see if we get an update so the tax will be correct...

 

[trps]

I received 2 March orders this morning for a show through my website. Neither had the tax figured with shipping. They used credit cards and did not pay tax on shipping. I wonder how PC is going to handle this?

 

[Intrepid_Chef]

My guess is that Pampered Partner will do an update with the 1st of the month and you won't be able to submit an order without the payment. You can always pay the 30 cents or so as a consultant gift.

Frankly I think we're worrying about this far more than our customers will. Since everybody else charges it, they're used to it if they've bought anything at all.

 

[aried]

Same for Illinois. Yes you are going to have to eat the extra tax for those February guests that you put their order on after March 1st. I have a call into the solution center supervisor. I have two shows that I am sending in.

 

[trps]

For all those March guests who paid through PWS their totals were added so now they are all .33 short. I will pay it but think PC should have had the March shows figuring on their side correctly as i didn't even talk to these people.

 

[byrd1956]

It is updated in p3, so my host that has not finished yet will be paying the extra for those that already paid. She told me to use her cc. I gave her a list of who still owed what and who she owed because of figuring totals incorrectly.