AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Expert: John Stancil, CPA Date: 7/13/2008 Subject: Tax on Shipping & Handeling
Question My wife recently went to a Tupperware party, and was charged tax on shipping and handling. I did not think that freight and or labor expenses were taxable....There was also a statement on the invoice about certain states, and if you were in one of those states you could not be charged. How is this legal to charge tax on freight or labor? Thanks Jeff
Answer Jeff,
Sales taxes are state taxes, and each state is free to pass laws taxing whatever they choose to tax. Some have chosen to tax shipping and handling. Others don't. It's that simple - we may not like what they have chosen to tax, but that's the power they have.
