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June 6, 2019
Question

If i buy a item out of state do i have to pay tax on the item also the shipping cost 225 do i have to pay tax on that too they say no tax collected at time of sale

  • June 6, 2019
  • 2 replies
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2 replies

Employee
June 6, 2019

Generally your state will collect  sales tax on the whole amount -- called use tax. Some states, I believe, do use tax only on the cost of the article ( bought  outside the state  for use in-state) but most include service/shipping cost i.e. the total out-of-pocket and do give you credit  for taxes paid (if)  to another state.

CalCountry
Employee
June 6, 2019

Here is an example of information relevant to California tax on shipping that might, or might not, be taxable.
See the following table from the California Tax and Fee Administration:
   https://www.cdtfa.ca.gov/formspubs/pub100/#applying