Ohio Sales Tax Difference

[kdipaolo]

Hi,

Zen Cart adds the Ohio Sales tax 6.75% after shipping costs have been added. For example:

Sub-Total: $78.94
United States Postal Service (1 x 2.00lbs) (Priority Mail): $8.30
Ohio State Sales Tax: $5.89
Total: $93.13

People in my office are saying that, the sales tax should be added before the shipping so it would be like:

Sub-Total: $78.94
United States Postal Service (1 x 2.00lbs) (Priority Mail): $8.30
Ohio State Sales Tax: $5.33
Total: $93.13

I guess my questions is: a) is sales tax suppose to be added before shipping costs are added? and b) If yes, how do you configure zen cart to get the sales tax to be calculated before the shipping costs are added?

Thanks so much!

[Kim]

First you need to verify that shipping is not taxable in your state. Talk to the tax department or your accountant. If you need to adjust things it is a simple switch in your Admin in the shipping module you use.

[kdipaolo]

I just verified that shipping in not taxable in Ohio. Do you know how I make the change in the shipping module? I look but I don't see anything regarding that issue.

Thanks for your help!

[Ajeh]

What are the settings if you go to Modules ... Shipping ... and click on USPS and look in the right hand panel?

[Taxcloud]

From: http://tax.ohio.gov/faqs/Sales/sales_taxability.stm


17. Are delivery costs taxable?

Yes. Effective Aug. 1, 2003 delivery charges by a vendor for preparation and delivery to a location designated by the consumer of tangible personal property or a service, including transportation, shipping, postage, handling, crating, and packing are taxable.