Why is Shipping Taxed Instead of Pre-Taxed Sale Price?

[milkangel]

I had a host woundering why do they have sales tax after the sh and why they tax Shipping insted of having sales tax before. never had it that way before.

 

[ShanaSmith]

It is a state law. Because we do not charge actual shipping costs (we are usually less) it is considered shipping and handling which is taxable in most states.

 

[PCJen]

From my understanding, a lot of companies pre tax shipping so customers don't think shipping is taxed when it is. PC just doesn't do it that way. Also depending what state you're in, shipping may not be taxed. It just depends on that states laws.

 

[DebbieJ]

It varies from state to state. We do not tax shipping in IL.

 

[cathyskitchen]

Have her read the back of the sales receipt (top left-hand corner). It clearly states that "Shipping and handling charges are taxable in all states except: AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT and WY." Blame it on the state, not PC!!

 

[Intrepid_Chef]

I did direct sales for 3 years with another company and hosted shows through another line ... we ALWAYS taxed shipping. I had to come to PC to find out that we don't do that here in Ohio!

 

[milkangel]

Thank you for your awnsers it helped a lot

 

[DessertDivaFL]

It is a state law. Because we do not charge actual shipping costs (we are usually less) it is considered shipping and handling which is taxable in most states.

I have been asked this in the past too. Wow! I am so glad I finally have the answer. You guys are fantastic!