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Amazon Charges Sales Tax On "Shipping and Handling"

You may have noticed that retailers like Amazon are charging tax, in compliance with state laws, on not just the price of goods, but on the "shipping and handling" fees they charge. An anonymous reader writes "By coincidence I noticed this myself the other night, and ended up ordering something from a supplier in Arizona, rather than Amazon, to avoid the sales tax. Now here is an article about it in the Los Angeles Times."

11 of 330 comments (clear)

  1. Outrage! by White+Flame · · Score: 5, Insightful

    After all the outrage in the Apple tax thread, everyone should stand for paying their fair share of sales taxes, not dodging them by ordering out of state from somebody they normally wouldn't.

    1. Re:Outrage! by swillden · · Score: 3, Insightful

      Because the sales tax on S&H for a $9.99 dvd is morally and ethically the same as pre-tax profits of $36.8 billion

      Sure it is. What's the difference? One number is much bigger than the other, but the difference in tax amounts is similarly different... and the *aggregate* of all the S&H fees on all the DVDs is probably not so much different in scale than the Apple number. So, what's the difference?

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  2. Re:sales tax is always on the FULL PRICE by PPH · · Score: 5, Insightful

    And now you see why small businesses don't like to have to collect taxes for hundreds of different taxing jurisdictions. When they aren't located there, are much smaller than Amazon and can't afford a tax compliance department staffed with accountants and lawyers. Yeah sure, you could do business as a 'associate' of Amazon and have them handle tax compliance for you. But now you're their bitch and they can dictate other aspects of your online existence.

    Wave good by to innovation.

    --
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  3. Was the handling charge really for handling ... by perpenso · · Score: 3, Insightful

    Was the handling charge really for handling or is it a euphemism for our markup after costs? In other words is part of the price being hidden/embedded in the handling charge? *If* so there may be some justification for including handling in the taxable portion of the bill.

  4. Re:Buy Amazon Prime. by neo8750 · · Score: 4, Insightful

    Way i see it is netflix is 8 bucks a month 8*12 = 96. Where with amazon prime its 80 and i get free shipping on my amazon purchases.

  5. Re:Buy Amazon Prime. by Lumpy · · Score: 4, Insightful

    But if you dont do it the y PUNISH you by delaying when your package ships. I have had orders sit unshipped for 5 days with them, when I ask about it I was told that "to avoid this get a prime membership"

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  6. Re:sales tax is always on the FULL PRICE by Tokolosh · · Score: 3, Insightful

    Amazon loves this complicated and convoluted system - it raises the barriers to entry of competition.

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  7. Re:Buy Amazon Prime. by Anonymous Coward · · Score: 4, Insightful

    It's not punishing, it's exactly what they told you they would do. If you choose free shipping, they say your stuff will be delivered in 5 to 8 business days. Given the abundance of their warehouses and ridiculously low shipping times, you should have received your order within 8 business days, so, they were within their right to delay your order to get more profitable (paid shipping and prime) orders out of door first. If you didn't get it on time, that's a different story.

  8. Re:Buy Amazon Prime. by Joe+Tie. · · Score: 5, Insightful

    I work in order to have time for leisure. In all seriousness, if you took the time I spent relaxing after work and made me work a second job? I'd prefer to be dead. That's not life, that's slavery.

    --
    Everything will be taken away from you.
  9. Re:Buy Amazon Prime. by mysidia · · Score: 3, Insightful

    Two day shipping is a convenience, but not worth it to a lot of people. It is for me, even if I opt for standard shipping,

    You're forgetting the important part: not only is it 2 day shipping, but it's also "free"; as in, no cost other than the cost of the prime membership for prime eligible items.

    As long as you would normally make 12 orders a year from Amazon, with approximately $7.00 regular shipping per order (approximately 1 order a month); then Prime is a good economic choice.

    More so, if you regularly paid extra per order for expedited shipping. More so if you have sales taxes in there.

  10. Re:Buy Amazon Prime. by Seumas · · Score: 3, Insightful

    Exactly. Instead of shopping online at Amazon (where the supplier of the Amazon-fulfilled shipment is often a small business or mom and pop), make sure to shop locally, at mom and pop shops that still exist, like Walmart, Best Buy, or Target.