Posted on 12/02/2007 12:58:37 PM PST by MissEdie
Vanity question I have regarding the taxes paid on Internet shopping. Is it standard practice for a company to tax the shipping and handling charges? The reason I'm asking I just ordered something online and the company charged my taxes based on the amount that included the shipping and handling.
But then, I'm not sure there is anything we aren't taxed for here in the People's Republic of California.
When things are hand delivered the shipping tends to be taxable. Beyond that it becomes murky, and you'll get different answers from different state officials on the topic.
Most states tax the S & H.
We collect taxes only for online sales within the state of Washington.
I bought some Christmas presents from Target online a couple years ago. Every state has one. I can't remember if I had to pay tax or not.
It is only a matter of time before all internet purchases will be taxed.
Hate to sound stupid, but where can I go to find out if SC taxes goods and services?
It varies on where and what. Just had a camera repaired by Canon in Illinois. I’m in Texas and tax was applied before s/h.
It depends. if your state collects sales tax on S & H...then, yes.
If not, then no.
Online sales tax should be no different than what you are charged at a 'brick and mortar'.
It depends. if your state collects sales tax on S & H...then, yes.
If not, then no.
Online sales tax should be no different than what you are charged at a 'brick and mortar'.
Sales tax laws are state specific and based on your state of residence where the goods are shipped to. You can probably find your state’s sales tax regulations on the web via your State Comptroller or Treasury Department’s website. I know in Maryland we are taxed on shipping and handling.
I did a lot of research on this topic both for work and as a treasurer of a not-for-profit literary org that also sold subscriptions to a quarterly magazine and books.
It used to be fairly simple in that a company or organization making sales out of state was not obligated to collect and remit sales tax to other states unless the company or organization had a “presence” in the other state, i.e. a store, office, or sales reps soliciting business in the other state. In other words, if I owned a store solely located and operating in Maryland and shipped the goods directly to your residence in PA, I would not charge you Maryland sales tax or PA sales tax. Technically though you should be remitting the PA sales tax yourself as “use tax” but “use tax” is rarely enforced on individuals as it is on companies.
The boom in internet sales muddied the waters quite a bit and states have been much more aggressive in their interpretation of what constitutes a “presence” in their state.
It’s become complicated and burdensome for companies to keep up with all the various state sales tax laws and mistakes happen but unless your purchase was a large one it may not be worth all the time and trouble….
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