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Pampered Chef: Tax on pantry?

  1. Intrepid_Chef

    Intrepid_Chef Legend Member Silver Member

    5,185
    20
    Here's basically what my host's order looks like:

    Total items other than pantry and half price: $72.75
    Half price items: $42.25
    Free product: $60
    Pantry items: $9.75

    We're being charged tax on $64.65, even though $7.80 of that, after 20 percent discount, is for pantry items. I added these LAST on her order and watched the taxable total go higher and higher.

    It's less than 20 cents but still ... why are these items taxable? Is it including pantry items as the free product no matter what I do?
     
  2. Trish in Texas

    Trish in Texas Member Gold Member

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    0
    Some states tax food items...as a way to generate income. Luckily, TX is not one of those states. You can see if your state charges that extra fee by doing the tax look-up on CC.

    Trish in Texas
    Independent Consultant
     
  3. Intrepid_Chef

    Intrepid_Chef Legend Member Silver Member

    5,185
    20
    I know my state does not tax pantry. It even acknowledges this on the host info part on CC. That is why I am confused.
     
  4. Ann F

    Ann F Advanced Member Gold Member

    688
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    Check your page with the host's address info. Is the 'food tax' checked?
     
    Aug 1, 2009
    #4
  5. Intrepid_Chef

    Intrepid_Chef Legend Member Silver Member

    5,185
    20
    The food tax is 0.00

    Without the pantry items:

    78.25 host purchases
    minus $60 free product
    Total $18.25
    minus 3.65 for 20 percent discount
    Plus half price items
    total $56.85
    Plus $3.70 tax

    With pantry items:

    Total host purchases: $88
    Minus $60 free
    Total $28
    minus $5.60 discount
    Total $22.40
    Plus half price items
    Tax is like $4.10
     
  6. MLinAZ

    MLinAZ Member Gold Member

    323
    4
    And the pantry items are *just* rubs/seasonings/sprinkles? I know you've been doing this for a while but when I started I messed up thinking cookbooks were "pantry" since that's the category they are in in the catalog LOL

    It has to be charging a separate food tax because the tax rate on the total without pantry items is 6.5% but if it was 6.5% on the entire total with pantry items (which I figured out to be $64.65 given the information you included), the tax would be $4.20. If you take out just the pantry items and the tax difference between your two scenarios, it appears that the pantry items are being taxed at 5.1%

    So $56.85 is taxed at 6.5% ($60.55) and $7.80 is taxed at 5.1% ($8.20) which ends up being $68.75.
     
    Aug 2, 2009
    #6
  7. wadesgirl

    wadesgirl Legend Member Gold Member

    11,440
    34
    P3 could be changing those items to the free stuff and then essentially charging tax on the non pantry items.
     
    Aug 2, 2009
    #7
  8. BethCooks4U

    BethCooks4U Legend Member Gold Member

    13,053
    41
    This is what is happening. The food items are being processed as some of the free items and Pampered Chef does not tax on the free items so the host is not being taxed on the food.

    Many other direct sales companies DO tax on the total host order BEFORE the free is subtracted so even with this we are giving the host a great deal. I don't understand the big hubbub about 40 cents. It's not worth your time. Move on.
     
    Aug 2, 2009
    #8
  9. kam

    kam Legacy Member Staff Member

    3,687
    321
    Yep, this happened to me too (my 2nd show!). We don't charge tax on pantry items here either. I had figured out everything by hand at host's house (didn't charge tax on pantry) and when I got home and entered it in P3, it was different. I finally figured out that the pantry items were going under the FPV.
     
    Aug 2, 2009
    #9
  10. Shawnna

    Shawnna Senior Member Gold Member

    2,394
    6
    P3 adds all items...except half price and host special then subtracts the FPV, leaving everything else to be taxed. I don't know any other way they would do it. Did you check in your show set up to see if you have a tax percent in the food items spot? Some states tax food at different rates and so you would have 2 different rates, some don't tax food at all, some states tax shipping and some don't. Sorry, I'm not any help. I have never had this situation before.
     
    Aug 2, 2009
    #10
  11. NooraK

    NooraK Legend Member Gold Member

    5,884
    29
    I've spoken to Tech Support about this before. P3 is not capable of calculating two tax rates on the hosts order (for whatever reason, I don't know, they couldn't tell me), so what they do is take the FPV off pantry items first. It was quite a bummer for me, because my host's order was pretty much all Pantry, and she had to pay full tax on it because of P3's limitations.
     
    Aug 2, 2009
    #11
  12. Intrepid_Chef

    Intrepid_Chef Legend Member Silver Member

    5,185
    20
    Thanks, Beth and Noora. I was just confused because actually, the pantry items were things I added to the order as consultant gifts, and were not part of the hosts FPV at all.

    I just wanted to know what was happening, that is all. I was surprised when my tax increased after I added the last 2 items as pantry.
     
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