Rant Optimizing Tax After Shipping: My Fundraiser Rant and Lessons Learned

[chefheidi2003]

I did a fundraiser and I am putting the orders in..and I am getting so irritated. Do you think that the tax line is after the shipping line for the heck of it? Come on people use some common sense.

Sorry I just had to rant about that for a minute. I am getting so irritated. It is my sister's Relay for Life team. The first one that I came to I thought oh well I will just pay the $0.26 not a big deal but now that I am at about 3 of them I am getting irritated.

The other thing and this is not a vent but I now owe some people some money because they added tax to everything including the pantry items.

 

[kayleigh]

I normally take the extra money that they paid and donate for RUFTH, which I dont know if you can still do on a fundraiser (I have never done one) but that way it is still the same amount they have they were spending and it goes to a good cause. It will also show on their receipt. I have never had anyone ask about it nor get mad. If they had I would probably just refund their money.

 

[chefheidi2003]

I normally take the extra money that they paid and donate for RUFTH, which I dont know if you can still do on a fundraiser (I have never done one) but that way it is still the same amount they have they were spending and it goes to a good cause. It will also show on their receipt. I have never had anyone ask about it nor get mad. If they had I would probably just refund their money.

I was thinking about doing that..but instead of RUFTH I was thinking about donating it to the Relay team that the fundraiser was for. I was thinking about just putting a post it note on there telling them that. Since it is all just a little bit if they have an issue I don't mind paying them back the difference and then it will be like I donated a little bit the the team.

 

[kam]

Yes, it gets quite frustrating. But, MANY people do not realize shipping is taxed. I have had a guest at a show get quite furious with me that shipping was taxed. She was SURE that it DID NOT and how dare I charge her! She said some other DS company didn't charge tax on shipping. ??

I had to explain it was NOT a PC thing - but it was dictated by our state (PA).
To this day I am sure she believes I conned her out of 24 cents ($4 shipping back then).

Here is something I include in host packets now so the host can calculate the outside orders - or atleast verify them before collecting the $.

**PLEASE note that I have not updated this recently - so I do not know if the product prices are still correct in my example. I don't have a catty handy to check.

 

[kdangel518]

See, I feel the opposite, because I live in a state where shipping is NOT taxed. I LOVE the OOF's where I can print the non-taxable shipping version and send those along to hosts and customers, but it's frustrating for me when I'm at a show and making a mess out of our 3-ply order forms to accurately show that tax is calculated BEFORE shipping despite the fact that's not the way the order form is set up

But, I guess a majority of states do tax shipping so they have to make the forms friendly to MOST people, so I deal. At the end of the day I just cross out boxes and re-name as necessary and if anyone asks I will gladly explain that they're lucky to live in MA b/c we don't tax on shipping unlike other states so they're saving

 

[kdangel518]

Oh, and the BEST for me is when I get customers that live in NH (a state with no sales tax) at a MA party (with 6.25% sales tax) and they complain that they have to pay tax b/c the tax is determined based on where the goods are being shipped to. Again, you can't please everyone... but it's either pay 6.25% for tax or up to 11% to have them shipped to your own home to avoid the tax so...

But I digress, that's another issue entirely!

 

[lesliec]

Thanks KAM!!!! I am going to edit this with our tax rate and will be sending this out with my host packets.

 

[chefheidi2003]

Now I have a lady who I guess decided that the shipping rate was just a suggestion..because she didn't add it at all..BUT..she generously rounded up from $8.22 to $8.50..gee thanks.

I just need to call my sister and tell her about the issues..I feel bad because she knows what she is doing..it is the people on her team.

If someone rounded up..that will still go to RUFTH right? I was thinking about not marking it as rounded up on the slip and giving it to the organization because I wonder if that is where they think that it goes.

 

[kayleigh]

This is an awesome form!! I also live in state where shipping is NOT taxed but I also live on a state line where the shipping is taxed (indiana). This form would be helpful for those who have the shipping taxed. People will find something to complain about if they are that type of person is what I have found. : )

 

[chefheidi2003]

I had someone at a show tell me one time that it is ILLEGAL to charge tax on shipping..I didn't know what to say..I knew that it could not be because PC knows the laws about that stuff..but that was rediculous.

 

[ChefBeckyD]

I had someone at a show tell me one time that it is ILLEGAL to charge tax on shipping..I didn't know what to say..I knew that it could not be because PC knows the laws about that stuff..but that was rediculous.

I've had that happen several times. Usually it's an accountant who says that. I show them the back of the receipt, and tell them that it's the State of Michigan that they need to complain to, because PC is not where the money is going!

 

[chefsteph07]

That's interesting, because we do not charge tax on shipping for Ohio, but yet, if I order something from PARTYLITE, I get charged tax on shipping. I thought it was per company policy, not state. So, then since I get taxed on shipping for PL, am I not supposed to since I don't tax shipping for PC as stated on the PC order form?

 

[lesliec]

Funny, I had a guest at a show who freaked out about this. Then convinced everyone (including me) that the tax rate was 1% less than it actually was (I ate that), then went on and on about how at her house it was 2% less (it isn't, I looked it up). She was a handfull and I did not ask her to book a show, but the host told me as we were closing the show, that this lady wanted to host a show. You'd better believe that I will NOT be calling her to book. Not worth the headache.

 

[mrshamel3808]

Funny, I had a guest at a show who freaked out about this. Then convinced everyone (including me) that the tax rate was 1% less than it actually was (I ate that), then went on and on about how at her house it was 2% less (it isn't, I looked it up). She was a handfull and I did not ask her to book a show, but the host told me as we were closing the show, that this lady wanted to host a show. You'd better believe that I will NOT be calling her to book. Not worth the headache.

We just had a bunch of sales tax rate changes here in CA so it might have been 2% less if there had just been a change. We had "temporary" increase of .5% through April 2009. After that I didn't hear anything about it changing again. I did a show using the 8.75% tax rate only to find out when I input it into P3 that it had again increased permanently to 9.75%. The first time they increased it there was a date announced and it was all over the media. The second time, no one I asked about it had known either.

 

[esavvymom]

You simply can't please anyone these days. WE don't set the tax rates...and if people bothered to look at the receipts in their purse, they'll see the rate right there! As far as tax on shipping....most of us do not even check that closely when we "check-out" for a purchase that includes shipping. Having it on their receipts makes them aware of something they never knew before. Of course, people think that since they didn't KNOW about it, that it must not be true.

 

[[email protected]]

I live in CT - the law is that there is tax on services. I.e., shipping, lawn service, haircuts, etc.

 

[lesliec]

We just had a bunch of sales tax rate changes here in CA so it might have been 2% less if there had just been a change. We had "temporary" increase of .5% through April 2009. After that I didn't hear anything about it changing again. I did a show using the 8.75% tax rate only to find out when I input it into P3 that it had again increased permanently to 9.75%. The first time they increased it there was a date announced and it was all over the media. The second time, no one I asked about it had known either.

Nice thought, but no. It is the area I grew up in, and It was 7.25 10 years ago. She claimed it was 6.25 when it is actually 8.25 (not sure when it went up, but not that recently) She is just dumb and arrogant. She was combining her order with someone elses b/c she couldn't dream of spending $4.25. Just a negative nancy, not someone I want to host a show.

 

[cincychef]

That's interesting, because we do not charge tax on shipping for Ohio, but yet, if I order something from PARTYLITE, I get charged tax on shipping. I thought it was per company policy, not state. So, then since I get taxed on shipping for PL, am I not supposed to since I don't tax shipping for PC as stated on the PC order form?

It is my understanding, and I could be wrong here, but it is based on how the company terms their consultants. Alot of times when you order online you don't pay tax because it is being shipped from another state. With Pampered Chef the transaction is being considered to take place in each state where the party is held and held to the tax laws of the state, including the no shipping in Ohio. Some of the other companies, consider the transaction to take place either where the consultant lives or where the company is based out of. Again, I am not 100% sure this is true and I have no idea who explained it to me this way, but it made sense to me.

 

[BlueMoon]

anyone in Arizona? Tax after shippingI am really confused about this one, and I am not signed yet, so I can't really call home office.

I was at a Silpada party the other night where one of the guests got so upset that I decided to look it up and print up something from the govt to show at my parties. (She actually makes tablecloths and stuff at home and says she doesn't have to charge tax on S&H)

and--now I am more confused. What I find makes it look like we should not charge taxes on s&H in AZ if they are "not included in the retail price", or if they are listed separately. I got this from two govt sites in AZ.

If there are any AZ consultants who can help me out with this and give me a reference, I'd sure appreciate it. I trust that my recruiter and the Silpada rep at the party are right, I just want to be able to back my words up when this comes up for me.

Thanks in advance
Marghi

 

[DebbieJ]

when someone pays regular tax on pantry, I just add it to the RUFTH amount.

 

[ChefBeckyD]

Re: anyone in Arizona? Tax after shipping

I am really confused about this one, and I am not signed yet, so I can't really call home office.

I was at a Silpada party the other night where one of the guests got so upset that I decided to look it up and print up something from the govt to show at my parties. (She actually makes tablecloths and stuff at home and says she doesn't have to charge tax on S&H)

and--now I am more confused. What I find makes it look like we should not charge taxes on s&H in AZ if they are "not included in the retail price", or if they are listed separately. I got this from two govt sites in AZ.

If there are any AZ consultants who can help me out with this and give me a reference, I'd sure appreciate it. I trust that my recruiter and the Silpada rep at the party are right, I just want to be able to back my words up when this comes up for me.

Thanks in advance
Marghi

Your best, and safest bet would be to call HO, and speak to someone in the finance dept.

 

[gailz2]

The tax, of course, depends on where the items are being shipped to (I just did a party in NY and one of the outside guests was to have theirs shipped to VA, which is 3% less than NY). In NY shipping and handling are taxed. Some states do actually tax on food, which NY does not. Our sales tax varies from county to county, again, the rate charged is where the item(s) are delivered to.

 

[Myjenny]

Correct me if I'm wrong.. but I am in WA where we have sales tax but if an Oregon customer comes to my party in WA, I mark the tax exempt box in PP3 and they do not have to pay the tax even if it's shipped to WA. When they come shopping in a store up here they do not have to pay tax either though. We are right on the border!!

 

[BlueMoon]

Re: anyone in Arizona? Tax after shipping

I was at a Silpada party the other night where one of the guests got so upset that I decided to look it up and print up something from the govt to show at my parties.

and--now I am more confused. What I find makes it look like we should not charge taxes on s&H in AZ if they are "not included in the retail price", or if they are listed separately. I got this from two govt sites in AZ.

If there are any AZ consultants who can help me out with this ....

Thanks in advance
Marghi

Your best, and safest bet would be to call HO, and speak to someone in the finance dept.

Dear Becky D,
of course you are right, and I really appreciate your response. I get a little eager and ahead of myself sometimes--
The truth is sometimes it's just best to get the official word, after all, HO has paid legal staff to deal with this stuff..

Thanks,
Marghi

 

[ChefBeckyD]

Re: anyone in Arizona? Tax after shipping

Dear Becky D,
of course you are right, and I really appreciate your response. I get a little eager and ahead of myself sometimes--
The truth is sometimes it's just best to get the official word, after all, HO has paid legal staff to deal with this stuff..

Thanks,
Marghi

And it's different for every state! Honestly, I've been doing this for almost 8 years, and I can count on one hand the # of times someone has questioned this. Yes, often people will ask if they have to pay tax on the shipping - but they mostly just understand when I tell them that the State requires it.


Of course, that may be because we're taxed out the wazoo here in Mi, so it doesn't come as a surprise to them that shipping is also taxed.

 

[Becca_in_MD]

Correct me if I'm wrong.. but I am in WA where we have sales tax but if an Oregon customer comes to my party in WA, I mark the tax exempt box in PP3 and they do not have to pay the tax even if it's shipped to WA. When they come shopping in a store up here they do not have to pay tax either though. We are right on the border!!

My understanding for using the tax exempt box in P3 is that it's for tax-exempt organizations. Prior to P3, in PP, I did a tax exempt order and had to fax the tax exempt certificate to HO referencing the show #. Not sure why people in Oregon don't have to pay WA sales tax for items shipped to WA. Do they get to go into any store in WA and not pay sales tax by providing an ID?

 

[chef_kimmo]

Funny, I had a guest at a show who freaked out about this. Then convinced everyone (including me) that the tax rate was 1% less than it actually was (I ate that), then went on and on about how at her house it was 2% less (it isn't, I looked it up). She was a handfull and I did not ask her to book a show, but the host told me as we were closing the show, that this lady wanted to host a show. You'd better believe that I will NOT be calling her to book. Not worth the headache.

Here in Houston the tax rate depends if you are near a bus line. Since your location says central Texas I am thinking you are not near a local bus line but that is how it is done in Houston. It is too hard to know on every show so I charge the same rate on every order.... it is based off of where the show is being held too.

 

[chef_kimmo]

My understanding for using the tax exempt box in P3 is that it's for tax-exempt organizations. Prior to P3, in PP, I did a tax exempt order and had to fax the tax exempt certificate to HO referencing the show #. Not sure why people in Oregon don't have to pay WA sales tax for items shipped to WA. Do they get to go into any store in WA and not pay sales tax by providing an ID?

When I did a fundraiser for an organization that was tax exempt (like the Boy Scouts) I had to submit the tax exempt info to the HO before I could send in the show..... but that was long time ago too. I imagine it is still the same

 

[gailz2]

Page 3 of the Consultant Policy Guide, under Submitting Shows states the sales tax is "calculate sales tax based on where the products are being shipped". It also goes on to state that shipping and handling is taxed in most states and the exceptions to that are on the back of the receipt.

 

[Myjenny]

My understanding for using the tax exempt box in P3 is that it's for tax-exempt organizations. Prior to P3, in PP, I did a tax exempt order and had to fax the tax exempt certificate to HO referencing the show #. Not sure why people in Oregon don't have to pay WA sales tax for items shipped to WA. Do they get to go into any store in WA and not pay sales tax by providing an ID?

Yes, they can go into the store and provide ID and do not have to pay taxes. We do have to send in paperwork to HO with ID information if they are tax exempt.

 

[Intrepid_Chef]

I live in a state where they don't tax pantry and also don't tax shipping. But EVERY other direct sales plan DOES tax it, so it can be confusing.

When somebody pays tax on pantry, I add to round up but if it's more than $1 I feel like I have to ask. If it's a credit card I just charge the lower amount and let them know in case it's a debit card.

 

[chefpatrice]

This note is perfect, thank you!!