Taxes applied AFTER shipping charges? Why I hate online shopping

[White Widow]

I just ordered some meory from Crucial, and I was reminded how much I hate the way that online companies try and extract that extra $1. When you order from many places, they calculate your tax (if you live in that state) after the shipping charges have been added. Is there any good reason for this, or just underhanded money grubbing? Since when was shipping an extra part of the product that therefore deserves to be taxed? I bet these places are only passing on the taxes for the original item to the state, and just pocketing the "tax" collected on the shipping charges. Ugh.

-Aaron

 

[beer]

Sounds like tax fraud to me if they apply sales tax after shipping. The shipping carrier already applies sales tax.

 

[Ultima]

I got charged $50 in tax cause I live in canada and bought from an american company..

 

[kranky]

Where do you get tax fraud?

Each state would have rules that determine if shipping/handling charges are taxable. For example, the rule for Pennsylvania is that if the items sold are taxable, the S&H is taxable. If the items are non-taxable, neither is the S&H. If the order is for both taxable and non-taxable, then the entire S&H amount is taxable.

So it's not the company gouging for extra money, probably. Your state Department of Revenue office can confirm if you should have been charged sales tax on the shipping.

 

[IBhacknU]

Here in Hawaii everything gets taxed, including S&H