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Old 09-03-2009, 08:38 AM   #609
Gina K. Designs
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Join Date: Jul 2006
Posts: 7,496

Originally Posted by nkirk View Post
This has always puzzled me. In Florida, shipping is not a taxable item, yet I get charged sales taxes on SU's shipping cost. I've asked several demos about this and they could not answer. I e-mailed SU directly and never received a reply.
Hi Nancy,
Different states call "Shipping" different things. In New Jersey, it's called "Delivery."

The reason why most online companies do not charge you tax on shipping or even on your sale is because they do not do business in that state.

In the case of Stampin' Up, they are registered as a business in EVERY state because they have independant demonstrators who are selling their products in their own state to residents of their own state.

Since SU does not require the demonstrators to keep track of and file their own sales tax returns and they do it on behalf of the demonstrator, they must charge sales tax on their taxable products and sales tax on the delivery of those taxable products which means shipping.

The laws may be similar in Florida but when you purchase over state lines or ship over state lines, those taxable items become exempt. With no taxable items being shipped, there is not tax on the shipping charges. (You can only tax shipping if there are taxable items in the order.)

At that point, it becomes the responsibility of the purchaser to file a sales tax form with their own state and list all purchases made outside state lines and pay "use tax" on those items.

I hope that makes sense.

I didn't want anyone to think that Gina K. Designs was breaking the law by NOT charging tax or tax on shipping to any of our customers outside of Wisconsin.

Gina K.
My Blog and StampTV

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