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sholling
Premium
join:2002-02-13
Hemet, CA
kudos:1

Sales Tax On Postage?

I ordered a something from a California company and had them ship via United States Postal Service and they informed me that they now have to charge sales tax on postage - including US mail postage. That'll be the last time that I do business with that vendor until they pack up and leave this chicken state.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--


FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Actually I think it's fairly typical. Much like you might pay a premium at the grocery store when you purchase stamps from them as opposed to the post office...

The company you bought your item from may have decided to get rid of their Pitney-Bowes machine as a cost-cutting measure, and so now they have to use regular stamps to mail stuff out in that manner.

Was your package "postaged" with a pitney bowes style full amount single stamp, or did it have a bunch of 41 (or what is it now 44 cent) stamps on it?

- FM
--
This just in from the department of redundancy department...


dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1
reply to sholling
"Tax does not apply to the delivery charges under these conditions if the charges are clearly stated as a separate entry on the invoice or other bill of sale. If the delivery charges are not stated separately, they are taxable."

Here's a link to the Pirate, ...umm... Ca tax code that covers this: »www.boe.ca.gov/sutax/faqpurch.htm#10

As you see, the code is more like ...ummm... guidelines


sholling
Premium
join:2002-02-13
Hemet, CA
kudos:1
I see what's happened. The state has directed them to charge for shipping and "handling" if those two aren't separate line items on the invoice. I'm wondering if "handling" is legally taxable because it's a service. I don't remember a 2/3 vote of the people making "handling" taxable.

quote:
Orders Shipped to California State
Effective January 1, 2010, Monoprice, Inc. will be collecting sales tax on shipping and handling charges on orders shipped to destinations within the State of California. Sales tax is charged on the products and also on the shipping and handling amount.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--


Steve
I know your IP address
Consultant
join:2001-03-10
Foothill Ranch, CA
kudos:5
said by sholling:

I'm wondering if "handling" is legally taxable because it's a service.

It's been taxable for at least the last 20 years.

The rationale is that without doing this, companies would trade a lower price for higher "handling", giving the consumer the same net price, but with lower sales tax. This — wink wink — is the same as a discount paid for by the FTB.

I believe the only way to get around this is to line-item the actual freight costs (with "handling" still taxable).
--
Stephen J. Friedl | Unix Wizard | Microsoft Security MVP | Orange County, California USA | my web site


sholling
Premium
join:2002-02-13
Hemet, CA
kudos:1
That make makes sense. I've never believed in charging for handling.