sales tax

[cmercante]

What is the name of your state (only U.S. law)?
I live in PA. Can you tell me if it is legal for an internet skin care company to charge sales taxes on the original price of the product instead of the discounted price? Also, the company charges sales tax on the shipment charge. Is the legal?

Example:
original price: $100.00
discount: -35.00
actual pd price: 65.00
shipment: 9.75

Sales tax charged on $109.75

 

[racer72]

If the discount was from a coupon or other reduction taken at the time of checkout, sales tax must be collected on the full amount. If the discount was deducted from the price prior to checkout, no tax should be collected. Federal law prohibits sales tax on the cost of postage and shipping on USPS mailing and shipping.

 

[Tayla]

PA DEPT OF REV- Sales and Tax Collections would be a good source to have this verified.

Something isnt kosher with the way this was calculated. PA Doesnt PRE TAX and then place discount afterwards, Otherwise it would be a rebate. Which is entirely different.