Taxable Totals on Grocery Delivery Orders

[Intrepid_Chef]

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?

 

[Trish in Texas]

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

 

[Intrepid_Chef]

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.

 

[Ann F]

Check your page with the host's address info. Is the 'food tax' checked?

 

[Intrepid_Chef]

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

 

[MLinAZ]

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.

 

[wadesgirl]

P3 could be changing those items to the free stuff and then essentially charging tax on the non pantry items.

 

[BethCooks4U]

P3 could be changing those items to the free stuff and then essentially charging tax on the non pantry items.

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.

 

[kam]

P3 could be changing those items to the free stuff and then essentially charging tax on the non pantry items.

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.

 

[Shawnna]

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.

 

[NooraK]

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.

 

[Intrepid_Chef]

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.