Results 1 to 4 of 4
  1. #1
    mtbr member
    Reputation:
    Join Date
    Feb 2004
    Posts
    159

    is it normal to charge sales tax on S&H?

    I discovered today that Performance Bike charges state sales tax on the amount of your total order, minus coupons, plus shipping and handling.

    Example: I buy items totaling $100
    I use a 10% off coupon code, now total is $90.00
    My shipping and handling charge is $10.00, now my total is $100.00
    Sales tax in my area is 7.0%, i'm charged $7.00 tax, my total is now $107.00.

    Question: Is this normal business practice? I was under the impression that sales tax is charged on the total of the goods and service. Performance evidently considers S&H a service, for which they charge tax.

    What is your opinion of this practice? Is this consistent with other mail order businesses you have dealt with?

    Thanks

  2. #2
    I'm such a fox
    Reputation: endoMaster's Avatar
    Join Date
    Aug 2004
    Posts
    244
    Quote Originally Posted by seeker
    I discovered today that Performance Bike charges state sales tax on the amount of your total order, minus coupons, plus shipping and handling.

    Example: I buy items totaling $100
    I use a 10% off coupon code, now total is $90.00
    My shipping and handling charge is $10.00, now my total is $100.00
    Sales tax in my area is 7.0%, i'm charged $7.00 tax, my total is now $107.00.

    Question: Is this normal business practice? I was under the impression that sales tax is charged on the total of the goods and service. Performance evidently considers S&H a service, for which they charge tax.

    What is your opinion of this practice? Is this consistent with other mail order businesses you have dealt with?

    Thanks
    Sounds like they are using a loophole to charge extra.

    I don't shop through Performance but I have used other vendors and none have charged me tax on the shipping total.

    Agustin

  3. #3
    JmZ
    JmZ is offline
    Reformed Lurker
    Reputation: JmZ's Avatar
    Join Date
    Jan 2004
    Posts
    3,029
    Depends on the state.

    I've heard that Indiana has recently changed so that things with S&H will have to pay sales tax. So if you buy from Tire Rack or Zipp or Woodwind & Brasswind... it's possible to see additional tax charges.

    If I'm wrong, someone please correct me... I've gotta go pound on some doors.

    JmZ

    Quote Originally Posted by seeker
    I discovered today that Performance Bike charges state sales tax on the amount of your total order, minus coupons, plus shipping and handling.

    Example: I buy items totaling $100
    I use a 10% off coupon code, now total is $90.00
    My shipping and handling charge is $10.00, now my total is $100.00
    Sales tax in my area is 7.0%, i'm charged $7.00 tax, my total is now $107.00.

    Question: Is this normal business practice? I was under the impression that sales tax is charged on the total of the goods and service. Performance evidently considers S&H a service, for which they charge tax.

    What is your opinion of this practice? Is this consistent with other mail order businesses you have dealt with?

    Thanks
    JmZ

    From one flat land to another.

    Advocate as if your ride depends on it...

  4. #4
    Feeding your addiction
    Reputation: Ventanarama's Avatar
    Join Date
    Dec 2001
    Posts
    2,648
    Quote Originally Posted by JmZ
    Depends on the state.

    I've heard that Indiana has recently changed so that things with S&H will have to pay sales tax. So if you buy from Tire Rack or Zipp or Woodwind & Brasswind... it's possible to see additional tax charges.

    If I'm wrong, someone please correct me... I've gotta go pound on some doors.

    JmZ
    You're correct, it's determined by the state. Some states require shipping charges to be taxed, others dont.

    Larry
    Mountain High Cyclery
    "It is inhumane, in my opinion, to force people who have a genuine medical need for coffee to wait in line behind people who apparently view it as some kind of recreational activity". - Dave Barry

Members who have read this thread: 0

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

THE SITE

ABOUT MTBR

VISIT US AT

mtbr.com and the ConsumerReview Network are business units of Invenda Corporation

(C) Copyright 1996-2018. All Rights Reserved.