? Tax on shipping charges

[Trippy Cat]

I just received Kit back from the doll hospital and noticed that the packing slip showed a balance due of .43. I live in Illinois and have to pay sales tax. I added on sales tax of 6.25% but I calculated tax pre-shipping. Is it normal to pay tax on the shipping costs? I know other online sites don't do this. Can someone educate me this.

[T. Lynn]

I'd call them.

Do they really expect you to write out a check, put a .39 cent stamp on it all for .43 cents.

Seems stupid...

[Trippy Cat]

I don't know how serious they are about collecting - I almost didn't notice it on packing slip. It's only 43 cents so I'll pay it. I just wasn't aware of it. I ran a sample order on the website and it appears I've always paid tax on shipping and just wasn't aware of it.

[emsmombuysdolls]

That seems a bit odd. I would call. If they want you to pay, then send it in pennies. It would be worth the shipping $$ on the pennies. [img]wink.gif[/img]

[FelinaDoon]

You can't blame AG for this one and sending pennies would be mean. I would call up AG and expalin and see what happens. They would probably just wave the fee.

[Skittl1321]

I work for a home sales company, and if I sell to any of the following states, I have to collect tax on shipping;
Alabama, Louisiana, Pennsylvania, Alaska, Maine, South Dakota, Arkansas, Michigan, Texas,
Minnesota, Mississippi, Washington, Connecticut, Missouri, West Virginia, Florida, Nebraska, Wisconsin, Georgia, New Mexico, Hawaii, New York,
Indiana, Nevada, Kansas, North Carolina,

So it's not that uncommon to pay tax on shipping.
Oddly enough IL is not on there- which is strange- there might be different laws for large businesses like AG.

But since it would cost more to mail it than to pay it, I would call and ask if they really want it.

<font color="#33CCCC" size="1">[ September 08, 2006 07:28 AM: Message edited by: Skittl1321 ]</font>

[Trippy Cat]

Thanks for letting me know. I was confused since this seems to be inconsistently done with other online sites. I have no problem paying it. I just felt out of the loop - not knowing it was the law. Thanks for the clarification.

[caroloto]

Yes IL is one of those few states that you'll pay taxes on shipping cost. Taxes is added after shipping fees and items purchased. That's why I really like the free shipping codes! lol

IL tax forms this year (Apirl 2005) I noticed also had a section where if you purchased from a catalog or internet site from states that don't (not required) to take out to pay IL the taxes from these purchases and didn't pay a tax you need to report the total amount of these purchases and add the amount as due to IL state sales tax.

<font color="#33CCCC" size="1">[ September 08, 2006 12:13 AM: Message edited by: caroloto ]</font>

[flauta]

Is it the IL tax or the Chicago tax that we in IL are forced to pay? Remember, Chicago's tax is much higher than 6.5% (8.75%?). If it is the case that we pay the Chicago tax, that could account for the $.43. Just a thought.

[Trippy Cat]

The Chicago tax at the store is much higher. This is the same amount of tax that other online sites charge for Illinois. I emailed AG and they responded as follows: "Thank you for your e-mail inquiry about our policy of taxing shipping
and processing charges. Our charge does include additional costs for processing your order beyond the cost of shipping; therefore, our
company is obligated to collect tax on shipping and processing." I guess this explains why some charge tax and some don't.