Urgent How to Respond to Tax on Shipping and Handling Charges?

[erinyourpclady]

I received this from one of my hosts...my Momma to be exact.....fro one of her friends


"I was making out my order for your lovely daughter and stopped before finalizing it because she is charging tax on the shipping and handling. How come? I understand the tax on the products, but I have never been charged taxes on the shipping and handling before. Is this normal? Let me know"

I am a loss on how to respond....maybe I am just having a brain fart but the words are not coming.Can y'all help?

 

[pamperedpals]

When guests question tax on shipping, I let them know that the state requires tax on shipping. Then they are okay with it, because we tax everything here in Washington.

 

[crystalscookingnow]

I would let your mom have a copy of the receipt & show that it is from the state & Pampered Chef. It's not that YOU are charging her tax, THEY are!

 

[Kathy's_Kitchen]

Shipping and handling is taxable in every state except: AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT & WY.

If she lives in one of those states AND is having the products shipped direct, she will not have to pay tax on the s & h. Even if she does live in one of those states but is having the products shipped to the host, who does not live in one of those states, the s & h is taxable. If everyone lives in a non-taxable s & h state, then no problem.

In my city/state, TX, the tax is only $.33 on the $4.00....and we have what I think is a high tax rate!

 

[erinyourpclady]

My DH says is she really complaining about a buck......she would be paying tax on direct shipping so it could be much more..I don't know. The guest is in Colorado.

 

[BethCooks4U]

The shipping and handling is taxed (in some states) because it includes "handling".

 

[janetupnorth]

So, based on this S/H is taxed in YOUR state AND hers.Politely respond and emphasize that it is HER state laws requiring that you charge her tax on the S/H.

 

[MissChef]

Yeah, what Janet said! I always tell people, "and Washington charges tax on it's S&H.... it's not a PC thing, it's a Washington thing! People usually don't question it farther from there!

 

[pamperedpals]

Yeah, what Janet said! I always tell people, "and Washington charges tax on it's S&H.... it's not a PC thing, it's a Washington thing! People usually don't question it farther from there!

I get the same response when I tell them it is a Washington thing also.

 

[erinyourpclady]

Ok....so this is the response I have written....

First of all thank you so much for placing an order with my mom’s catalog show. She is very excited to be helping me out and I so appreciate that! She will also benefit from your order and for that I am so excited for her!
In regards to your question about the tax on shipping and handling. Certain states require that items offered via direct sales are taxed on shipping and handling. In fact most states with the exception of the following…AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT & WY; require that items as well as shipping and handling are taxed. While I personally would prefer to not have to charge on shipping and handling, The Pampereed Chef® and I must comply with the lasws of all the states. I hope that this clears up any confusion but if you do still have questions, I would be more then happy to investigate further.


Well...what do you think?

 

[crystalscookingnow]

Looks good to me. Although if she's complaining, she might just keep on complaining.

 

[Flamingo]

Sounds good to me may I "use" it also????

 

[pamperedpals]

Sounds great Erin.

 

[DebbieJ]

Looks good, except I don't think you need to give her the list of states. That's too much information that she doesn't need.

 

[erinyourpclady]

Ok...I am sending it out!

 

[pamperedlinda]

Sounds perfect!

I always 'blame the state' too when people question it at my shows. Once you tell them it is not under PC's control they are usually fine with it.

 

[erinyourpclady]

Looks good, except I don't think you need to give her the list of states. That's too much information that she doesn't need.

good thought....noted.

 

[vwpamperedchef]

I want to know how she meant "lovely daughter" sounds sarcastic to me.

 

[erinyourpclady]

I want to know how she meant "lovely daughter" sounds sarcastic to me.

Nah...she really means lovely daughter...she is family!

 

[vwpamperedchef]

well thats good to hear---!

 

[MissChef]

Looks great Erin, I like how you worded it! Especially this part:


While I personally would prefer to not have to charge on shipping and handling, The Pampereed Chef® and I must comply with the lasws of all the states.

Sounds very professional!!!

Good Job!

 

[pamperedlinda]

oops, laws is spelled wrong! I hope you caught that before you sent it out.

 

[erinyourpclady]

oops, laws is spelled wrong! I hope you caught that before you sent it out.

I did......my typing today is suffering do the fact that I was up off and on all night and at the Drs today....my youngest DD has strep!:yuck:

 

[merego]

response sounds good Erin, some people just aren't happy unless they are complaining.
I am in Ohio so we don't have to charge tax on D&H. but when I do shows in KY, I do and I have forgotten and brought the wrong order forms from CC before.

 

[cochef]

I like your response Erin. If I have a guest that really questions the tax on shipping, I do remind them that is a state requirement and then I offer to pay the $0.30 and that kind of makes them realize that it really isn't that much

 

[Loreen]

When I had a customer who pushed the tax issue - wanted to know under what law, statute, etc. in Florida - I contacted HO and they put me in touch with JoAnn Alfaro ([email protected]) who provided me with the exact cite & quote from the Florida Administrative Code. I provided that info to the customer and no further complaint was heard.

I now keep a copy of that email in my calendar so if anyone asks again, I have a handy reference and don't have to stumble and bumble along about it.

 

[dannyzmom]

Would you mind sharing that email? I am in Florida as well.

 

[Loreen]

Sure, let me see if I can find it - not sure it I still have it b/c it's from April.

In any event, the cite is Rule 12A-1.045 (3) (a) Florida Administrative Code

 

[Loreen]

Re: How to respond to this.... FloridaHere you go


As stated for Florida

Rule 12A-1.045, Florida Administrative Code states:

"(3)(a) Where the seller agrees to deliver tangible personal property to some designed place and the puncher cannot elect to avoid the charge for transportation service, the charge for transportation is subject to tax, even if separately stated on an invoice or bill of sale. "

Since as a consultant you can not avoid shipping charges stated on the sales order form. therefore sales tax MUST be collected on the total sale, which includes 'SHIPPING AND HANDLING"




Thank you,

JoAnn Alfaro

630-261-4077


I can forward the email to as well if you want it. Where in FL are you?

 

[chefliz]

You guys are going to laugh, but I live in OH and everyone here complains because we (PC) does NOT charge tax on shipping and handling! Every other direct sales company here in OH taxes s&H and I have no idea why the difference, but do you ever wonder...

Maybe some people will always complain about SOMETHING??? LOL

 

[chefliz]

response sounds good Erin, some people just aren't happy unless they are complaining.
I am in Ohio so we don't have to charge tax on D&H. but when I do shows in KY, I do and I have forgotten and brought the wrong order forms from CC before.

Wait a second??? We can buy different order forms-how? Please tell me how...They always send me the ones that have the sales tax listed appearing as though the customer has to pay it on the s&h...

 

[cathyskitchen]

Wait a second??? We can buy different order forms-how? Please tell me how...They always send me the ones that have the sales tax listed appearing as though the customer has to pay it on the s&h...

There are different outside order forms available on Consultant's Corner for download, not different sales receipts. The sales receipts are all the same. There are 3 different types of outside order forms - ones for states who tax S&H, one for states who don't, and one for states who have to charge the higher 15% S&H rate (non-contiguous states like Hawaii and Alaska).

Go to the bottom of the "Promotions and Programs" page on CC and you'll see it explained there. HTH!

 

[chefann]

The outside order forms on CC have versions with tax before or after shipping. But the 3-part forms only come in one version.

 

[Humble Beginnings]

There are different outside order forms available on Consultant's Corner for download, not different sales receipts. The sales receipts are all the same. There are 3 different types of outside order forms - ones for states who tax S&H, one for states who don't, and one for states who have to charge the higher 15% S&H rate (non-contiguous states like Hawaii and Alaska).

Go to the bottom of the "Promotions and Programs" page on CC and you'll see it explained there. HTH!

Learned something new everyday. I live in Illinois and we do not tax on shipping and handling, I didn't know that but a customer pointed it out, thank goodness she was one of my first orders. I have to go check this OFF out because the one I print shows as if you are taxed on it. Thanks!

 

[Shawnna]

We don't charge tax on shipping in Oklahoma, but my mom sold Lia Sophia jewelry for awhile and they charged tax on the shipping even in Ok. Since Ok doesn't charge/collect the tax, what does the company do with it? Lia Sophia charges tax on shipping no matter where you live.

 

[chefliz]

OK, I did know that-sorry guys, I wasn't thinking. It was late for me when I was typing those thoughts in. Maybe this should be in another thread, but...

I don't like to use those because they usually get wasted. If/when you use the outside order forms, how many do you give to a host to use and when do you not give to a host? I have been using the regular order forms because they don't expire every month along with a flyer of the monthly specials...

 

[PampMomof3]

Re: How to respond to this.... Florida

Here you go


As stated for Florida

Rule 12A-1.045, Florida Administrative Code states:

"(3)(a) Where the seller agrees to deliver tangible personal property to some designed place and the puncher cannot elect to avoid the charge for transportation service, the charge for transportation is subject to tax, even if separately stated on an invoice or bill of sale. "

Since as a consultant you can not avoid shipping charges stated on the sales order form. therefore sales tax MUST be collected on the total sale, which includes 'SHIPPING AND HANDLING"




Thank you,

JoAnn Alfaro

630-261-4077


I can forward the email to as well if you want it. Where in FL are you?

Thanks Loreen! I'm in Florida as well and appreciate it!! Would you mind forwarding that email to me as well please? My address is [email protected]

Thanks!

 

[chefann]

OK, I did know that-sorry guys, I wasn't thinking. It was late for me when I was typing those thoughts in. Maybe this should be in another thread, but...

I don't like to use those because they usually get wasted. If/when you use the outside order forms, how many do you give to a host to use and when do you not give to a host? I have been using the regular order forms because they don't expire every month along with a flyer of the monthly specials...

I use my own outside order forms that already include tax on the shipping. When I used the generic HO OOFs, I found that every outside order was short that 24 cents. It doesn't sound like much, but it sure adds up fast! My forms do not have the monthly specials on them, because I hate wasting the forms and like having a bunch of host packs always ready to go. But I do give each host enough monthly special flyers to put one in each catalog.

 

[erinyourpclady]

I use my own outside order forms that already include tax on the shipping. When I used the generic HO OOFs, I found that every outside order was short that 24 cents. It doesn't sound like much, but it sure adds up fast! My forms do not have the monthly specials on them, because I hate wasting the forms and like having a bunch of host packs always ready to go. But I do give each host enough monthly special flyers to put one in each catalog.

I think that is a fabulous idea and use of your time Ann. Perhaps I will borrow that fab idea from ya...that is of course if you don't mind.....

 

[chefann]

Please do - that's why I shared it! My OOF is in the files here. I know other people use it.

 

[jbdowd0798]

I've had customers complain (mainly MK consultants) about shipping costs PLUS tax on items!! Oh well, its all part of the game. Its the same with ordering items on line from other companies, they too have to charge us tax on s/h. Hubby just ordered a new bed mat for the truck and we had to pay tax, oh well. its a part of living!

 

[LBurke]

I also have come accross this several times... I read somewhere (can't remember where now) that people usually pay it without knowing because alot of companies lump it itno the shipping price and just charge more for shipping.

 

[texaschef]

Thanks for the info...now I know who to blame...I mean how to explain that one!

 

[paigev71]

I think this may have already been mentioned by others in a different way, but in my primary job I ship things every day of the week. In most states, if a product is taxable so is the shipping. It is just the way the tax laws are set up.