Tax Rate For Items Delivered Outside Of Your County

Business By Dreme Updated 24 Feb 2011 , 8:54pm by Dreme

Dreme Posted 24 Feb 2011 , 6:39pm
post #1 of 7

I can't recall at the moment, but what tax do you for out of county orders to be delivered? Do I charge that county's rate, or mine? Also do you tax delivery fees.

6 replies
jason_kraft Posted 24 Feb 2011 , 7:40pm
post #2 of 7
Quote:
Originally Posted by Dreme

I can't recall at the moment, but what tax do you for out of county orders to be delivered? Do I charge that county's rate, or mine? Also do you tax delivery fees.



You typically charge sales tax based on the tax rate at the recipient's address. Different states and counties have different rules for whether or not delivery fees are taxable, contact your local government for the details.

Dreme Posted 24 Feb 2011 , 7:44pm
post #3 of 7

Ooo I did not know that. I normally don't ask for the address unless its a wedding or large order delivery. I charge my tax rate for pickups right? I have no idea where the order is going half the time when it leaves here.

Dreme Posted 24 Feb 2011 , 7:50pm
post #4 of 7

Also i'm starting to think based on other home based cake decorators in my area that I may be charging too much for tax. I had three people, (Because I like to ask multiple people. Two others did not know what I should be charging.), at my department of revenue tell me that I should be charging the state and county rate. The total is 7.75%. I'm not sure what I should do about this and what happens next.

jason_kraft Posted 24 Feb 2011 , 7:55pm
post #5 of 7
Quote:
Originally Posted by Dreme

Ooo I did not know that. I normally don't ask for the address unless its a wedding or large order delivery. I charge my tax rate for pickups right? I have no idea where the order is going half the time when it leaves here.



Sorry, I should have been clearer...IIRC sales tax is based on where the customer takes possession of the product (or where the service is performed). If the customer picks up the cake at your location, they take possession of the product in your county and pay your county's sales tax. If you deliver the product to them, the customer takes possession at their address (or the venue's address) and must pay tax based on their local rate.

jason_kraft Posted 24 Feb 2011 , 7:58pm
post #6 of 7
Quote:
Originally Posted by Dreme

Also i'm starting to think based on other home based cake decorators in my area that I may be charging too much for tax. I had three people, (Because I like to ask multiple people. Two others did not know what I should be charging.), at my department of revenue tell me that I should be charging the state and county rate. The total is 7.75%. I'm not sure what I should do about this and what happens next.



I would do what the dept of revenue says...if you're concerned that you're not paying the correct amount I would ask for the information in writing.

Dreme Posted 24 Feb 2011 , 8:54pm
post #7 of 7

Alright got everything squared away with the tax rate and they are sending over information. I now know what to do. Thanks jason-kraft.

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