Tax on Shipping? How Do I Explain This?

[scavallero]

I have had a couple of customers question me about taxing shipping? Does anyone know why Pampered Chef adds tax after shipping. Thank you.

 

[BethCooks4U]

Because it's the law. Some states don't tax shipping and they are listed on the back of the order form. All others do. It has something to do with the type of company and how their books are set up with the state. Refer them to CS if they continue to question.

 

[vmgcooks]

In many states shipping is taxable, so I guess that's why they added it directly to the order form.

 

[esavvymom]

It's based on the STATE law, not PC. Simple as that.

 

[Intrepid_Chef]

Yes, state law. Though for some reason PC doesn't tax shipping in Ohio but it's taxed on every other party plan. I don't make the rules, so I can't try to explain them, even to Roomie the Partylite Junkie, who insists I'm breaking the law!

 

[[email protected]]

I know that in CT, all services are taxed. Shipping is a service. It's as simple as that. PC has nothing to do with it.

 

[sherri lynn]

In Missouri it is taxed too, and I have some people who have questioned me about this too. I'm glad I'm not the only one who has been questioned about this.

 

[ShellBeach]

It's state law. Same reason as why some pantry food items are taxed differently than kitchen tools.

 

[Bren706]

Yup, state law. It has nothing to do with The Pampered Chef. I worked as a bookkeeper for a manufacturing company and we had a facility in MA and one in NC. Shipping for items that we purchased for our MA facility were not taxed, but the items for NC were.

The tax amounts that The Pampered Chef collects on both the products as well as the shipping goes directly to the state's department of Revenue. (They have to file a tax report each month). The reason that shipping is taxed in some states but not others is due to the tax laws of that particular state.

 

[wadesgirl]

I think it's funny that PC doesn't tax shipping in my state but other direct sales companies do!

 

[BethCooks4U]

I think it's funny that PC doesn't tax shipping in my state but other direct sales companies do!

As I mentioned earlier it has to do with how they set things up with their books in each state. They are based out of IL so I am thinking they use that state's model and different states read it as either taxable or not depending in their codes.

Whatever, it is what it is and we all have to get over it. It's the law and if your state taxes shipping the way PC has it set up (mine does) then you have to charge it. If someone argues it just show them the info on the receipt and tell them you are not a tax expert but you just know that you have to charge it and refer them to HO if they have further questions.

 

[islandgurlchef]

I remember years ago when I was a consultant in CA hearing that it had somemthing to do with the fact that there was loss of shipping revenue due to all orders being sent to host - in the early early days, I'm sure everything was shippped USPS instead of UPS or the present day Fedex. Who knows but you can always say "it's the law".

 

[raebates]

It is the law. It's taxed in all but a handful of states, and ours (Indiana) isn't one of that handful.

 

[BethCooks4U]

I remember years ago when I was a consultant in CA hearing that it had somemthing to do with the fact that there was loss of shipping revenue due to all orders being sent to host - in the early early days, I'm sure everything was shippped USPS instead of UPS or the present day Fedex. Who knows but you can always say "it's the law".

That was not true. They could not legally do that. It IS the LAW!

 

[scavallero]

Thanks so much! It is so much easier just to say it is the law and not a preference. Thanks for clearing that up. That is why I love this site, you guys are such a help.

 

[chefliz]

I think it's funny that PC doesn't tax shipping in my state but other direct sales companies do!

As another poster mentioned, this is how it is in OH also. But I just do what PC says and it has worked for us for yrs.

 

[ShellBeach]

Somebody posted a list quite a while back and they way I decided to remember it - in case customers asked - was that the only states who DON'T tax shipping are vowel states in the middle of the country: Iowa, Indiana, Illinois and Ohio.

Which excludes Alaska and Alabama. That's all the geography I've got this morning.

 

[wadesgirl]

Here's all the states:
AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT, WY

 

[esavvymom]

Here's all the states:
AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT, WY

Who DON'T tax shipping.....

 

[wadesgirl]

Who DON'T tax shipping.....

Yes! I meant to attach that to the message that was posted right before mine.