# sales tax question - is this correct?

**URL:** <https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678>\
**Category:** Factual Questions\
**Created:** [April 9, 2014, 1:06am UTC](https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678 "2014-04-09T01:06:15Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![crypto](https://avatars.discourse-cdn.com/v4/letter/c/b3f665/32.png) [@crypto](https://boards.straightdope.com/u/crypto)\
**Post date:** [April 9, 2014, 1:06am UTC](https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678/1 "2014-04-09T01:06:15Z")

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I just made an on-line purchase. I called the order in, as I had a question about the product, and after it was answered, I figured I might as well just place the order.

After giving my info, she told me the final price, with shipping and handling and tax.

However, they taxed the shipping and handling charge.

Now I always thought that S&H was a separate charge, and I don’t ever recall being charged tax on it. but I thought I’d ask you all to see if what they did was correct.

Another question I have is that I rarely pay sales tax on an item when I order it on-line, and I asked about that before completing my order. The woman told me that since they have a store in my state, that taxing me my state’s sales tax was SOP.

I had never been told that before either, but hey… maybe the purchases I’ve made on line have been from stores that don’t have an address in my state or whatever the rules are.

thanks

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**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\
**Post date:** [April 9, 2014, 1:24am UTC](https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678/2 "2014-04-09T01:24:32Z")

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What state are you in? Just picking randomly, it looks like the [New York sales tax](http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/shipping_and_delivery_charges.htm) applies to shipping and handling charges for taxable goods.

States can only tax retailers that have “physical presence” in the state. It could be a store or a warehouse or an office, but it has to be in the state. However, even if you aren’t charged by the retailer, your state probably requires you to pay directly to the state. Note: The vast majority (like 98%+) of consumers do not do this, so don’t be confused if you’ve never heard of this, let alone complied with it.

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**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\
**Post date:** [April 9, 2014, 2:31am UTC](https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678/3 "2014-04-09T02:31:57Z")

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“Calculate tax on shipping” is an option in all of the online shopping cart software I’ve worked with.

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**Author:** ![Reply](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/reply/32/15952_2.png) [@Reply](https://boards.straightdope.com/u/Reply)\
**Post date:** [April 9, 2014, 2:44am UTC](https://boards.straightdope.com/t/sales-tax-question-is-this-correct/685678/4 "2014-04-09T02:44:41Z")

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It just varies by state. List:

> **[Is Shipping Taxable? - TaxJar](https://www.taxjar.com/sales-tax/sales-tax-and-shipping)**
>
> Some states consider shipping charges taxable, while others do not. Here's a helpful guide to understanding if shipping is taxable in your state.

And yes, it also depends on whether they have a significant presence in your state. One site calls this “nexus”:

> **[What is sales tax? A complete guide - TaxJar](https://www.taxjar.com/sales-tax)**
>
> Need some sales tax refreshers? Our sales tax fundamental section will answer all your sales tax questions, from how to file, where to collect and remit.
