A friend of mine ordered some blankets from Dillards. They charged her the tax after the subtotal and the shipping were included in the bill. Is this correct or not?
2007-12-30 15:50:04 · 5 answers · asked by Egan 1 in Business & Finance ➔ Taxes ➔ United States
It depends on the state's sales tax law.
2007-12-30 23:57:07 · answer #1 · answered by Steve 6 · 1⤊ 3⤋
What state are you in. The answer depends on the state...many states DO charge for shipping.
Here's Texas rule:
8. >Are delivery or shipping charges taxable?
Shipping and handling charges are taxable if the charges are associated with the sale of taxable goods or service.
For example, you sell a sofa to a customer for $500. You agree to deliver the sofa and charge separate fee of $50 for delivery. Because your sale of the sofa is taxable, your $50 delivery charge is also taxable. You should collect sales tax on $550.
Here's California:Shipping and Handling
Common carrier transportation charges from a vendor to a purchaser are not taxable if the charges are separately stated. Common carriers include UPS, FedEx, US Mail, freight lines, etc. Sometimes common carriers add a hazard charge, insurance charge, or something similar, none of which are taxable.
Delivery charges are taxable when a vendor uses their own vehicle to deliver the item purchased. For example, if Sears delivers a refrigerator.
Handling charges are taxable. Shipping and handling charges when billed as a lump sum are treated as taxable, even though the actual shipping charges are not technically taxable.
2007-12-30 15:59:59 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Steve is wrong when he states "when a vendor uses their own vehicle...", but more on track in his statement about separately stated charges for delivery.
2015-03-18 09:15:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Depends on the state - some states do, some don't - if they do, then the seller is REQUIRED to charge it.
2007-12-30 16:35:16 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
No! It is illegal! I just researched this for a homework assignment. They can't charge tax on shipping. Tell her to call and complain and threaten to sue...they will and better refund it.
2007-12-30 15:58:12 · answer #5 · answered by Melanie F 3 · 1⤊ 7⤋