[ic] Handling charges taxable when shipping charges are?

[Stefan Hornburg (Racke)]

On 12/11/2015 04:36 PM, Mort wrote:
> Quoting Josh Lavin (jlavin at endpoint.com):
>> List folk,
>>
>> It seems that Interchange does not apply sales tax to Handling charges,
>> even when Shipping charges are set up to be taxable.
>>
>> e.g.
>>
>>     config:  TaxShipping TX
>>     variable:  TAXRATE TX=8.25
>>
>>     subtotal: $19.99
>>     shipping:   5.38
>>     sales tax:  2.09  (25.37 * .0825)
>>     handling:   5.00
>>    ------------------
>>     total:    $32.46
>>
>> This is a problem at least for Texas, where both shipping and handling
>> charges are to be taxable:
>>
>>     "Shipping and handling charges are taxable if the charges are
>>     associated with the sale of taxable goods or service."
>>
>>     http://comptroller.texas.gov/taxinfo/sales/faq_collect.html#collect8
>>
>> It seems that several other US states are in the same situation:
>>
>> https://www.boe.ca.gov/formspubs/pub100/
>> https://revenue-pa.custhelp.com/app/answers/detail/a_id/214/~/are-shipping-and%2For-handling-charges-subject-to-sales-tax%3F
>> http://www.floridasalestax.com/Florida-Sales-Tax-Rules/12A-1-045.aspx
>> http://www.stateandlocaltax.com/noteworthy-cases/handle-with-care-shipping-and-handling-fees-subject-to-arizona-transaction-privilege-tax/
>>
>> I wonder if others have experienced this?
>>
>> Or is anyone in a locale where your situation is different -- where
>> shipping is taxable, but handling is not?
>>
>> It seems this patch to Interpolate.pm would fix it (around line 5752):
>>
>>      foreach $code (@code) {
>>              next unless $Vend::Cfg->{TaxShipping} =~ /\b\Q$code\E\b/i;
>>              $amount += tag_shipping();
>>  +           $amount += tag_handling();
>>              last;
>>      }
>>
>> But to make this change to core IC would mean that all existing IC
>> catalogs with taxable shipping would start having handling taxable, even
>> if it wasn't before.
>>
>> If this is considered a bug, then such a change would be a good thing.
>>
>> An alternative change would be to add a new config, "TaxHandling", and
>> process it in a separate for() block than shipping. This would thus
>> require a configuration change for it to take effect.
>>
>> Thoughts?
> 
> If we are going to make a change, I think we should add TaxHandling
> so that the change is willful. That way if someone needs it, they
> can make it, but it won't break existing people.
> 

Yeah, that makes sense to me.

Regards
	Racke

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