How can there be sales tax on s/h?

Question

I have noticed that some websites that offer free products (in this case software) through the mail charge a s/h fee which is understandable but sometimes, even though not a single penny is being paid for the "product" and just for s/h... I still get charged a sales tax. Is this ok practice for the company to charge sales tax on s/h when the invoice clearly states that the "product" is free?

Answer 1

That depends upon state law. Some states levy sales tax on shipping and handling charges and some do not. And a few only levy it on the "handling" portion IF it is separately stated by the vendor. Without knowing where you are located, it's not possible to say if it's being collected properly or not.

Answer 2

There can be sales tax on "handling" gas to get to the PO and tape, boxes, etc.. But there is no tax on postage. How they can combine "shipping and handling" into one charge, and apply tax to the entire amount seems illegal to me, I have come across this issue in my life, more than once, but since it usually comes out to a small amout of additional money, I never fight it.

Ask your local congressman to require sellers to separate "shipping" from "Handling" and the problem is solved.

Answer 3

transport isn't taxable, yet dealing with is. If a employer does not choose for to choose what the transport can charge is, they'd tax the completed quantity. Please see the e book below