Researching Shipping Tax Laws in Mass: Is it Legal?

[melaniepc]

does anyone know where I can find an article on if its legal to tax shipping in mass? I know alot of consultants for different companies and none of them tax shipping here, it must be a law right? well there is one consultant for a company that is sort new and she INSISTS they tax shipping and we are all wrong. is there a way to check that?

 

[kam]

This is on CC under Tax Rate Guide on the main screen (along the right hand side)


NOTE: Remember that there is no sales tax for the following states: Delaware, Montana, New Hampshire and Oregon, and, as such, will not be in the drop-down menu. Shipping and handling charges are taxable in all states except AK, DE, DC, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT and WY.

 

[melaniepc]

yes but is there a general rule or is every direct sales company different on the tax thing?

 

[jbdowd0798]

Check out the IRS website irs.gov and search for direct sales company or ds tax, etc. and you may find something.

 

[kam]

Maybe someone else knows for sure, but I thought it was the STATE that determined that.

 

[chefann]

Sales tax is determined by the state. Your state's website should have more information, although it may be a bear to find.

 

[melaniepc]

thanks everyone, I kinda found something on mass website but the way they word it is so confusing. I just wanted to find something to show her. Although, I guess its not really my issue.. I just feel bad that she isnt doing it correctly for her customers. She said when she enters her orders on her screen it always comes out correct with the amount she charged .. so I dont know whats up. I will keep looking. thanks everyone

 

[NooraK]

I did a Google search. This article isn't an exact answer to your specific question, but it addresses the same issue.

http://www1.whdh.com/features/articles/hank/BO50419/

A quote from the article:

Commissioner Alan LeBovidge, Massachusetts Department of Revenue
"The bottom line rule is there's no sales tax on separately stated shipping charges in Massachusetts."

 

[melaniepc]

alright, that article is helpful. All the other ones I found use too many technical terms. Thank you

 

[redsoxgirl]

There is no tax on shipping in Mass. However, some companies get away with it by charging tax on the handling instead.