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The latest on sales tax on shipping charges (part 1)

TaxConnex

Among states with sales tax, shipping generally incurs sales tax in the District of Columbia, Kansas and New Mexico.

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Sales Tax on Shipping: When Does it Apply?

TaxConnex

Shipping is not taxed in Nevada, but handling is. When only some of the contents of a shipment are taxable, the shipping charges must be pro-rated in Minnesota, New Jersey, North Carolina, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Washington and Wisconsin (where a “reasonable allocation” is required).

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How Small Retailers Can Handle Sales Tax on Shipping: State-by-State Guide

CPA Practice

When made by common carrier or the United States Postal Service (USPS), transportation charges are exempt from sales tax if billed as a separate item (identifiable from other charges) and paid (directly or indirectly) by the purchaser. Transportation charges that are included in the sale price are not excluded from tax.

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