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Checking Tax Requirements on Shipping in SD

In summary, if the item is shipped from a store in Ohio, it is taxed; if the item is shipped from anywhere else, it is not taxed.
StacieB
Gold Member
1,742
I was wondering if anyone knows of a website where I can check to make sure that shipping is to be taxed in my state or what number to call at home office? I have had a few guests ask me about this. I know the back of the receipt doesn't say that we are not to tax shipping in SD. Thanks for any help.
 
Then tax it. It's taxed in every state but the ones listed. And BTW, it only amounts to a quarter, and is irrelevant if guests round up.Ohio is way confusing ... it taxes shipping on every other product except PC ...
 
Yes - if it isn't listed as non-taxed, then it's taxed. Point that out to guests and explain to them that it's a state law. (that's what I do.) I usually make a little joke of it and say something like "Oh you know MI - the state will tax anything it can!"

If you are really questioning it, you can check it out with Career Solutions at HO. I'm sure they would have the info that you need.
 
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Thanks, that I what I go by, but this same guest keeps telling me that we are not to do it. She thinks that the law changed. I would think that HO would know this if it changed. I will have to double check to make her happy I suppose.
 
Keep in mind that some companies have included tax in their shipping rates so that makes the customers think that it shouldn't be taxed. I have gotten this a lot from customers and I just tell them that PC doesn't pre-tax shipping like some companies do and here in WA it is state law that shipping is taxed. I never get any problems after I explain this.
 
StacieB said:
Thanks, that I what I go by, but this same guest keeps telling me that we are not to do it. She thinks that the law changed. I would think that HO would know this if it changed. I will have to double check to make her happy I suppose.

For future reference any of us can check our state's comptroller's website or Google "shipping tax" with your state name. When I've had guests question this in the past, I did exactly this, and in Texas, it came back to the State Comptroller, and they had the exact code on their website. I let the guest know that I want them to know that for future reference, it isn't just me or Pampered Chef, but the State of Texas that requires tax on shipping of delivered, taxable goods, however, since I want to be their consultant of choice, I will happily cover it for them this one time.

Stacie, in your case, I Googled "shipping tax South Dakota", and went to the South Dakota Department of Revenue and Regulation website. Following their "Sales Tax" info links, I used Control F to search the link they have posted for the most recent Sales Tax Guide (July 2008), and found the following applicable paragraphs:

Delivery Charges
Delivery charges are subject to the same state and municipal sales tax rate as the merchandise when delivered to a customer in South Dakota. If the product is not taxable, the delivery charge is not taxable.
Delivery charges are the charges by the retailer for preparation
and delivery to a location designated by the purchaser of product or services. Delivery charges include shipping, postage, handling, crating, packing, and fuel surcharge.

You can view the entirety of the document at:
http://www.state.sd.us/drr2/businesstax/publications/st/SalesTaxGuide08_adj.pdf
 
Di_Can_Cook said:
Then tax it. It's taxed in every state but the ones listed. And BTW, it only amounts to a quarter, and is irrelevant if guests round up.

Ohio is way confusing ... it taxes shipping on every other product except PC ...

Ohio tax I believe is based on where the item ships from if there is a store in OH then shipping is taxed if not it is not.
 

1. What is the sales tax rate for shipping in South Dakota?

In South Dakota, the current sales tax rate for shipping is 4.5%. However, this rate can vary depending on the specific location and type of items being shipped.

2. Do I need to charge sales tax on shipping in South Dakota?

Yes, as a business in South Dakota, you are required to charge sales tax on shipping. This includes the cost of postage, handling, and any other fees associated with shipping the product.

3. Are there any exemptions for charging sales tax on shipping in South Dakota?

Yes, there are certain exemptions for charging sales tax on shipping in South Dakota. These exemptions include shipping items to customers outside of South Dakota, shipping items to a tax-exempt organization, and shipping items for resale.

4. How do I register for a sales tax permit in South Dakota?

To register for a sales tax permit in South Dakota, you can visit the South Dakota Department of Revenue website and fill out the appropriate forms. You will also need a Federal Employer Identification Number (FEIN) from the IRS.

5. Can I use a resale certificate for shipping in South Dakota?

Yes, you can use a resale certificate for shipping in South Dakota if you are shipping items for resale. However, you will still need to collect and remit sales tax on the shipping charges unless the customer provides a valid resale certificate.

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