Is amazon.com overcharging for tax?

Discussion in 'Community' started by Doctor Q, Sep 26, 2003.

  1. Doctor Q Administrator

    Doctor Q

    Staff Member

    Joined:
    Sep 19, 2002
    Location:
    Los Angeles
    #1
    I buy a lot of books and other items from amazon.com. I recently noticed that they always charge sales tax on the shipping cost, not only on the item prices. Sales tax in Los Angeles is 8.25%. Tax on shipping is only a few cents here and a few cents there, but over dozens of orders it adds up. And over millions of customers we're talking about a lot of money.

    I know that the laws about whether shipping is subject tax varies from state to state. In California, merchants do not have to collect or pay sales tax on shipping charges.

    Is amazon overcharging me? Is the tax I've been paying on my shipping charges going into amazon's pockets, is it going to the state of California even though it isn't owed, or is it a legitimate charge even though I am in California?
     
  2. wdlove macrumors P6

    wdlove

    Joined:
    Oct 20, 2002
    #2
    My wife purchases from amazon.com, she always tries to order enough so that she gets free shipping and handling. They list on the bill what the S&H charges and then give her a credit. Purchasing on the Internet is suppose to be tax free, so I'm suprised that you are being charged. They don't charge my wife any sales tax.
     
  3. Doctor Q thread starter Administrator

    Doctor Q

    Staff Member

    Joined:
    Sep 19, 2002
    Location:
    Los Angeles
    #3
    We often get free shipping, so this only applies to the orders where we don't.
    There is no special tax for Internet purchases, but the usual state tax rules apply, the same as if you ordered by mail or phone. As I understand it: If you buy from a company that has a physical presence in your state (or maybe it's if their warehouse is in your state), they should charge you sales tax for your state and city. If not, they should not charge you tax and you are responsible for paying any tax to your own state or city.
    Maybe that is correct for Boston.
     

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