Taxing Out of State Orders and Taxing Shipping

[Guest guest]

Thanks for the clarification - I didn't think it was legal - I've been in

several businesses myself and have been associated with various entrepenours,

business ect... and no one has ever charged tax on shipping OR charged tax for

out of state orders - so was appalled when I actually really read one of their

invoices!

 

I did read a while back that some states were trying to start taxing out of

state - but didn't think that went thru....

 

Pam(who is big on research so will be checking this out some more)

-

Butch Owen

Monday, January 26, 2004 12:11 AM

Taxing Out of State Orders and Taxing Shipping

 

 

Hi Pam,

 

> ok...this is probably for Butch - can you tell me if its legal for a

> company (yep, YL) to charge TAX on SHIPPING?? I was looking thru some of

> the orders I have had for YL and noticed that tax is added to the

> subtotal and THEN taxed ... and another thing ... you can't legally charge

> TAX if you're out of state can you??? Or is it legal and just bad business

> practice? and if its not legal....then who is that tax money going to? or

> should I venture a guess?

>

> verrrrryyyyyy innnnnttteeeerrressstttiiiiinggggg

> Pam

 

Most likely someone else can shed more light on this than I can .. cause

there might be exceptions to what I'm going to tell you .. I

understand that a couple of governors have tried to push through taxes

on out of state sales and might have succeeded .. but I think they are

doing this with muscle rather than legal precedent behind them.

 

The issue is .. is it LEGAL or is it ILLEGAL .. the point of business

practices is not an issue.

 

I believe nobody can tax shipping charges within the USA .. countries

can charge duties on the total (gross) amount of an import .. including

shipping .. but that's a different animal.

 

In Maryland (the state from which we ship) we charge NO Taxes on any

order being sent OUTSIDE the state. We charge a 5% Maryland Sales Tax

on any order being sent to an address within the state .. UNLESS .. the

buyer provides a tax ID or some other form of documentation to show that

they are a reseller of goods or services .. and I don't care if their

business license is for training monkeys .. they still avoid the Sales

Tax when ordering from me. I believe my actions are legal.

 

I believe that taxing shipping costs is ILLEGAL .. and that its tax

inclusive to begin with and the taxes are paid by the profits or sales

made by the shipping agency. The US Postal Service has no taxes on

postage and I am willing to bet that FedEx, UPS and others don't either.

We've used FedEx from the GitGo and have never heard of such a thing.

 

That's my two cents .. if anyone knows of different precedent .. I'd be

happy to hear it. :-)

 

Y'all keep smiling. Butch http://www.AV-AT.com

 

 

 

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[Guest guest]

Hi Pam,

 

> ok...this is probably for Butch - can you tell me if its legal for a

> company (yep, YL) to charge TAX on SHIPPING?? I was looking thru some of

> the orders I have had for YL and noticed that tax is added to the

> subtotal and THEN taxed ... and another thing ... you can't legally charge

> TAX if you're out of state can you??? Or is it legal and just bad business

> practice? and if its not legal....then who is that tax money going to? or

> should I venture a guess?

>

> verrrrryyyyyy innnnnttteeeerrressstttiiiiinggggg

> Pam

 

Most likely someone else can shed more light on this than I can .. cause

there might be exceptions to what I'm going to tell you .. I

understand that a couple of governors have tried to push through taxes

on out of state sales and might have succeeded .. but I think they are

doing this with muscle rather than legal precedent behind them.

 

The issue is .. is it LEGAL or is it ILLEGAL .. the point of business

practices is not an issue.

 

I believe nobody can tax shipping charges within the USA .. countries

can charge duties on the total (gross) amount of an import .. including

shipping .. but that's a different animal.

 

In Maryland (the state from which we ship) we charge NO Taxes on any

order being sent OUTSIDE the state. We charge a 5% Maryland Sales Tax

on any order being sent to an address within the state .. UNLESS .. the

buyer provides a tax ID or some other form of documentation to show that

they are a reseller of goods or services .. and I don't care if their

business license is for training monkeys .. they still avoid the Sales

Tax when ordering from me. I believe my actions are legal.

 

I believe that taxing shipping costs is ILLEGAL .. and that its tax

inclusive to begin with and the taxes are paid by the profits or sales

made by the shipping agency. The US Postal Service has no taxes on

postage and I am willing to bet that FedEx, UPS and others don't either.

We've used FedEx from the GitGo and have never heard of such a thing.

 

That's my two cents .. if anyone knows of different precedent .. I'd be

happy to hear it. :-)

 

Y'all keep smiling. Butch http://www.AV-AT.com

[Guest guest]

>>Thanks for the clarification - I didn't think it was legal - I've

been in several businesses myself and have been associated with various

entrepenours, business ect... and no one has ever charged tax on

shipping OR charged tax for out of state orders - so was appalled when I

actually really read one of their invoices!

 

I did read a while back that some states were trying to start taxing

out of state - but didn't think that went thru....<<

 

 

It's in the process...this was in yesterday's paper in Knoxville:

 

http://www.knoxnews.com/kns/business/article/0,1406,KNS_376_2600457,00.html

 

HTH!

 

Melissa

 

 

 

 

 

 

[Guest guest]

I'm going to try to answer this question, please bear with me. Most

MLM's (YL is one) are licensed to do business in the individual

states that they sell (ship)to. Therefore, they are required to

collect tax on their products. As to the shipping tax issue, I would

first make sure they are actually charging a tax on the shipping. If

they are, then it could be the destination states law. I hope this

makes sense.

 

HTH

Buffy

 

, " Melissa Bell " <mbell@a...>

wrote:

>

Thanks for the clarification - I didn't think it was legal - I've

been in several businesses myself and have been associated with

[Guest guest]

I know with the company that I worked for, before I lost my job....they only

charged sales tax to instate customers.....and any shipments to the state of

California....unless they had the tax ID number on file for those customers.

 

From what I understood of the process.....California is a real stickler for

those tax dollars. The company I worked for took this very seriously, as

they'd received fines for NOT charging sales tax to California customers.

 

When I inquired about my business license here in the state of Alabama, I

was told that I would need the tax ID....and I asked about the taxes. As I

thought you didn't have to charge them, unless it was instate....and the

lady told me she believed you were really " supposed " to charge tax

regardless of where the item was to be shipped. Of course, she said she

wasn't sure.

 

I do know that I have never seen an instance where the tax was charged on

shipping. Shipping is a service, and as far as I know....at least in my

experience, anyone running a " service " type business cannot charge sales

tax. After all....what did you really " sell " ?

 

Just thought I'd contribute my 2 cents....for whatever that's worth.

 

Candy in AL

-

" Pam " <pam

 

Sunday, January 25, 2004 3:34 PM

Re: Taxing Out of State Orders and Taxing Shipping

 

 

> Thanks for the clarification - I didn't think it was legal - I've been in

several businesses myself and have been associated with various

entrepenours, business ect... and no one has ever charged tax on shipping OR

charged tax for out of state orders - so was appalled when I actually really

read one of their invoices!

>

> I did read a while back that some states were trying to start taxing out

of state - but didn't think that went thru....

>

> Pam(who is big on research so will be checking this out some more)

> -

> Butch Owen

>

> Monday, January 26, 2004 12:11 AM

> Taxing Out of State Orders and Taxing Shipping

>

>

> Hi Pam,

>

> > ok...this is probably for Butch - can you tell me if its legal for a

> > company (yep, YL) to charge TAX on SHIPPING?? I was looking thru some

of

> > the orders I have had for YL and noticed that tax is added to the

> > subtotal and THEN taxed ... and another thing ... you can't legally

charge

> > TAX if you're out of state can you??? Or is it legal and just bad

business

> > practice? and if its not legal....then who is that tax money going to?

or

> > should I venture a guess?

> >

> > verrrrryyyyyy innnnnttteeeerrressstttiiiiinggggg

> > Pam

>

> Most likely someone else can shed more light on this than I can .. cause

> there might be exceptions to what I'm going to tell you .. I

> understand that a couple of governors have tried to push through taxes

> on out of state sales and might have succeeded .. but I think they are

> doing this with muscle rather than legal precedent behind them.

>

> The issue is .. is it LEGAL or is it ILLEGAL .. the point of business

> practices is not an issue.

>

> I believe nobody can tax shipping charges within the USA .. countries

> can charge duties on the total (gross) amount of an import .. including

> shipping .. but that's a different animal.

>

> In Maryland (the state from which we ship) we charge NO Taxes on any

> order being sent OUTSIDE the state. We charge a 5% Maryland Sales Tax

> on any order being sent to an address within the state .. UNLESS .. the

> buyer provides a tax ID or some other form of documentation to show that

> they are a reseller of goods or services .. and I don't care if their

> business license is for training monkeys .. they still avoid the Sales

> Tax when ordering from me. I believe my actions are legal.

>

> I believe that taxing shipping costs is ILLEGAL .. and that its tax

> inclusive to begin with and the taxes are paid by the profits or sales

> made by the shipping agency. The US Postal Service has no taxes on

> postage and I am willing to bet that FedEx, UPS and others don't either.

> We've used FedEx from the GitGo and have never heard of such a thing.

>

> That's my two cents .. if anyone knows of different precedent .. I'd be

> happy to hear it. :-)

>

> Y'all keep smiling. Butch http://www.AV-AT.com

>

>

>

> Step By Step Instructions On Making Rose Petal Preserves:

http://www.av-at.com/stuff/rosejam.html

>

> To adjust your group settings (i.e. go no mail) see the following link:

/join

>

>

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