 PhilRojo SolPremium join:2001-06-11 Camarillo, CA kudos:2 1 edit | Sales tax on shippng & handling charges in CA Just discovered today that I get to pay sales tax on shipping and handling charges in addition to sales tax on the product itself after placing an order at monoprice.com.
From Monoprice, "Because we charge our customers a single amount for shipping and handling, it is determined that such combined charges are generally taxable under the California State tax law. As a result, effective January 1, 2010, we decided to collect sales taxes on shipping and handling charges for orders going to the California State."
Goes to show how much I order from online retailers in California. |
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 FutureMonKeep your Mitts off RMoneyPremium,ExMod 2002-05 join:2000-10-05 Seaside, CA | This I believe was primarily due to people selling things really super cheap (online and off), but then attaching a really high shipping/handling fee to it.
Y'ever seen an auction where the item sells for maybe $5 or $10 but the S&H is like $50.00? Items you KNOW don't weigh that much or really would warrant such a high cost.
...so the state of CA cracked down and said "Fine. We'll just make S&H taxable too."
- FM -- This just in from the department of redundancy department... |
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 TheRulWhy Not You?Premium join:2007-09-18 Gilroy, CA kudos:1 | It is the effect of people not wanting to pay tax, and the state wanting their tax. We have to pay for the legislator's perks somehow. -- I have a restraining order against the voices in my head. |
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 SteveI know your IP addressConsultant join:2001-03-10 Yorba Linda, CA kudos:5 | reply to FutureMon said by FutureMon:This I believe was primarily due to people selling things really super cheap (online and off), but then attaching a really high shipping/handling fee to it. Yes, that's it.
Sellers who charge *actual* shipping costs do not have to collect sales tax on those amounts (but handling, yes).
Steve -- Stephen J. Friedl | Unix Wizard | Security Consultant | Orange County, California USA | my web site |
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