Nashbar Overcharging California Sales Tax?

[Tom Young]

Just received an order from Nashbar, delivered via USPS. It looks to me that in calculating the
California state-wide sales tax of 7.25% they used the total of the merchandise plus shipping and
handling. Since shipping and handling is seperatly stated on the invoice I think this is illegal.

Shall we start a class-action lawsuit? I'll bet if we win - 5 or 6 years from now, everybody who was
affected by Nashbar's mis-calculation can receive a coupon good for $1 off on their next order!!!!!

 

[Niteynite1]

Or, you could call or write Nashbar and see if they'd send a credit or refund now.

Will I drive a Kia. My cell phone is a NOkia. I am so confused.

 

[Chuck Davis]

From http://www.boe.ca.gov/sutax/faqscont.htm:

"7. What if I collect too much sales taxes reimbursement from my customers?"

Answer: "If you collect more than the amount of tax due, you must either return the excess amount to
the customer or pay it to the state."

So, if you win a suit, the state will probably get the money, if they don't have it already. Also,
shipping may be exempt from tax, but handling isn't. When they're combined, tax is usually collected
on the combined total.

Chuck Davis

"Tom Young" <[email protected]> wrote in message
news:[email protected]...
> Just received an order from Nashbar, delivered via USPS. It looks to me that in calculating the
> California state-wide sales tax of 7.25% they used the total of the merchandise plus shipping and
> handling. Since shipping and handling is seperatly stated on the invoice I think this is illegal.
>
> Shall we start a class-action lawsuit? I'll bet if we win - 5 or 6 years from now, everybody who
> was affected by Nashbar's mis-calculation can receive a coupon good for $1 off on their next
> order!!!!!

 

[Moontrane]

Unfortunately, they are allowed to collect tax on S&H. They claim that S&H is a service and they can
collect tax on a service.

Other companies do this as well. The only way I see around this is to actually order by mail-this
way you can write a check for the proper amount. Just make sure the items(s) is/are in stock.

Des

Subject: Re: Nashbar Overcharging California Sales Tax? From: "Chuck Davis" [email protected]
Date: 05/31/2003 18:12 Pacific Daylight Time Message-id: <[email protected]>

From http://www.boe.ca.gov/sutax/faqscont.htm:

"7. What if I collect too much sales taxes reimbursement from my customers?"

Answer: "If you collect more than the amount of tax due, you must either return the excess amount to
the customer or pay it to the state."

So, if you win a suit, the state will probably get the money, if they don't have it already. Also,
shipping may be exempt from tax, but handling isn't. When they're combined, tax is usually collected
on the combined total.

Chuck Davis

"Tom Young" <[email protected]> wrote in message
news:[email protected]...
> Just received an order from Nashbar, delivered via USPS. It looks to me that in calculating the
> California state-wide sales tax of 7.25% they used the total of the merchandise plus shipping and
> handling. Since shipping and handling is seperatly stated on the invoice I think this is illegal.
>
> Shall we start a class-action lawsuit? I'll bet if we win - 5 or 6 years from now, everybody who
> was affected by Nashbar's mis-calculation can receive a coupon good for $1 off on their next
> order!!!!!