Taxes in Shopping Cart not showing...

Oct 6th, 2009 at 09:27 PM
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Scott Swedorski
VP of Software Development
0 posts

Wolverana wrote:
I'll have to go look that up, because (don't take this personally lol, definitely no offense meant at all) I think you're wrong on that. If you purchase something from an online business that is located in your own state you pay state tax. If you purchase something from somewhere outside of your own state (and that business doesn't have any locations in your own state at all) then you pay no tax. I'm pretty sure that's how it works. But... What I'm not sure of is if you purchase something from 'inside' your own state and you have it sent "out" of state, that's where it's confusing for me. I'll see if I can find the tax info and to also find out if every state is the same too.

We here have the pleasure of dealing with county and city taxes also, so following what I said above, if anyone that lives within my county purchases they pay county and state tax, and if they are within my city they pay county, state and city taxes. Basically meaning that it's where the customer is purchasing from not where they are having it shipped to... but as I said I'll go look this up so I make sure, and when I find the info I'll post the basic thing here so we all know for sure lol. I don't want to confuse anyone else anymore than I already have... including me :P


Yes, you are correct. That is why is based on shipping destination not order origination. If you order something from Dell and you live in Texas and you have it shipped to Michigan, since Michigan has no Dell office there will be no tax applied to the order. Just because you live in Texas and Dell has an office in Texas does not mean you will be charged tax. I have actually gone through that process with Dell before when I ordered a computer for my parents who live in Michigan when I was in Texas. No tax was applied to my order.

Fun stuff...... ;)
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Oct 6th, 2009 at 09:37 PM
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Jo Rice
Senior Advisor
10,951 posts

Thank you! That's what I was looking for lol. So the destination plays the key role mostly when the purchaser is located in the same state of the purchase, but shipping it elsewhere. Interesting though, as it doesn't make sense it would be that way, but now you have me curious enough to check some old email sales receipts for things I had shipped to my own mom too. I wouldn't have ever given taxes at that time a thought since I purchased some things from Walmart.com which we have one in our city, but didn't have it shipped here. Thanks again Scott I think that clears up my head a little more on this subject lol. *notes how much patience Mr. Scott has* O.O
Jo

http://elementsinwebdesign.com
Oct 6th, 2009 at 10:07 PM
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Phil
Ambassador
2,174 posts

Jo Ann,
Best thing you can do, is, what you've said you'll be doing... Look it up for yourself.

This is mainly wise, because, many states/locals will vary.

But, in my years of research (that's what I tell my wife my shopping online is...) alot of places are set up as was stated. If you sell something from state A and customer is in state B, if you don't have a physical location in state B then you DON'T charge tax for that purchase. BUT there are always exceptions to the norms, so don't ever assume that because your friend John Boy does it one way, that it will be right for you as well... It's your reputation on the line.

Also, remember that quite a number of us on-line shoppers, are not as honest as the law would like. In some states, if you make an on-line purchase and aren't charged tax for it, you MAY be responsible for sending in a TAX payment to your state (isn't that so wonderful?)... Does anyone do that? I'm sure someone does, but not everyone for certain.

And yet one more thing to consider, some states charge taxes on shipping (as well as other services). Wouldn't it be so much nicer if all states did things the same :rolleyes:
Living the dream, stocking the cream :D
Oct 6th, 2009 at 10:30 PM
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Jo Rice
Senior Advisor
10,951 posts

It sure would be nice if they did a standard wouldn't it? I tell ya, they make it so hard, and now with all the hulabaloo about trying to get internet taxes to all states from all states omg what a pain that would be if that passes! Let's hope not lol.

I'm sure it won't be too hard to check shipping locations when I'm shipping items so I can be sure if the person was supposed to pay tax or not. Being that the shopping cart allows the customer to choose if they pay the tax or not basically so hopefully more people will be honest than dishonest in this respect too. I'm gonna vote that most people will and try to keep it simple in the end for that.

I will for sure be double checking all that when I get to that point though so I am paying the right amount of tax. I'll have to decide when I'm a little closer to opening my store what I'll do for people that don't choose the right area for taxing lol, but that's a future thing to deal with :)
Jo

http://elementsinwebdesign.com

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