Today’s Bottom Line column:
Q: When mail-ordering garden bulbs from a Connecticut supplier, I totaled my order for the bulbs, computed the tax based on that, and added the shipping and handling charge. They contacted me to say they would not process my order until I also paid them taxes on the shipping and handling. I have two questions: Why do we pay taxes on shipping? As “handling” is a service, not a product, why do we pay taxes on that?
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