Target calculated sales tax on the items purchased and s&h. Shouldn't sales tax only apply to the puchase amount? Also: when buying a hamburger with a coupon for "buy one, get one free", should the "free" hamburger be sales taxed?
2006-07-16 16:06:24 · 6 answers · asked by redd laffn 1 in Business & Finance ➔ Taxes ➔ United States
For the hamburger, if you read the fine print it will usually say that sales tax still applies. The rules can vary by state, but I'm willing to guess the general rule is to charge.
Many years ago I worked at a Dairy Queen where we'd get buy one get one free coupons. We were to ring up two sales, subtotal for tax, then take the base price (before tax) from the total.
Most states have sales AND use tax. Ordinary customers usually don't deal with use tax, but the laws basically state that if you purchase something and were not charged sales tax (and you put that purchase in use or consume it) then you owe the state use tax. Everything subject to a state's sales tax should have that tax collected in some form. In the buy one get one free case, the hamburger shack is taking care of the collection.
Concerning Target, I would say it was proper for them to tax the shipping and handling. You need to consult your state sales tax instructions to know for sure.
2006-07-17 03:07:00 · answer #1 · answered by Molly 6 · 2⤊ 0⤋
Yes, sales tax is added only on the item purchased, then the shipping and handling fees are added, for the delivery of the item. Sometimes, depending on the retailer, some do charge sales tax on an item that was purchased.
2006-07-16 16:14:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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RE:
Does sales tax apply to "shipping and handling"?
Target calculated sales tax on the items purchased and s&h. Shouldn't sales tax only apply to the puchase amount? Also: when buying a hamburger with a coupon for "buy one, get one free", should the "free" hamburger be sales taxed?
2015-08-18 13:54:37 · answer #3 · answered by ? 1 · 0⤊ 0⤋
Sales tax applies to money spent on goods. If your "buy one get one free" burger cost 3.00, you pay tax on 3 dollars. If it cost 10 $ to ship, you still pay tax on 3$. The retailer does not have to pay sales tax on shipping, and if they are charging you sales tax on shipping, then they are pocketing the money and you are getting ripped off.
2006-07-16 16:10:24 · answer #4 · answered by uncle_beer78 3 · 0⤊ 0⤋
It's all inclusive. Sorry, I work at a store that does shipping and we have to get sales tax on shipping.
2006-07-16 16:10:05 · answer #5 · answered by steveed 3 · 0⤊ 0⤋
I've never had anything taxed after shipping and handling. Only the items your purchasing are taxable. Depending on taxes where you live you do have to pay tax on your buy one get one free items.
2006-07-16 16:11:09 · answer #6 · answered by Mom of 5 3 · 0⤊ 0⤋
ALL stores online stores and catalogs charge tax on shipping and handling. It's always been that way.
Tax on a free hamburger?...I don't know for sure but it doesn't sound legal to me.
2006-07-16 16:12:25 · answer #7 · answered by Molly 6 · 0⤊ 0⤋
Usually tax is applied to s&h because it is a service and the service is taxed.
2006-07-16 16:38:00 · answer #8 · answered by nursechrisi 2 · 0⤊ 0⤋