Re: Taxable Freight? yes or no -- BPCS-L

From Al Macintyre 

This topic is irrespective of version of BPCS except in the solution.

I think Roger is correct that it has something to do with where the title 
changes hands.

One of the internet tax discussion topics is the idea that there would be a 
national data base ... your computer sends to it the address of the customer 
you are shipping to, some codes describing what is being sent, and it would 
calculate for you what the sales/use taxes are.  The outfit would be 
certified by the government as having the latest tax accuracy so that you 
would be protected against having wrong information.  In other words, to 
avoid tax penalties, only do business with certified places, for purposes of 
getting this information.

And if the ISP is down, hold off on shipment JIT until you are able to 
connect.

There is also the issue of all these tax authorities that have to be paid.

As soon as you pay them one time, they assume you will always be paying 
similar sums to infinity & if you stop having customers in their jurisdiction 
with comparable taxable activity, they will assume you are a tax cheat, and 
it will take several years of wrangling to get them off your back.

The more you can find some intermediate collection authority to cut down on 
the places to be paid, the better off you are.

Many years ago I worked for a retail / wholesale establishment that also used 
Zip Code in the calculation of taxes & we had some instances where the County 
Line & Zip Line did not agree ... for example in the Cincinnati Ohio area, if 
memory serves me correctly from 20 years ago, Batavia & Loveland shared a 
portion of the same Zip Code & each had a county tax ... so long as the tax 
was the same & the whole thing was paid to the state of Ohio, then there was 
no problem, but one lesson from this was until the government fixed the zip 
code demarkation, all businesses would be smart to stay out of both cities, 
because if you have offices in one or the other it complicates the tax 
computation.

>  From:    Roger.Henady@thorco.com
>  
>  
>  I think this has something to do with where the title changes hands.
>  FOB our Dock, or   FOB Distination.
>  
>  
>  The best answer is to get the customer to take ownership at your dock.
>  They are responcibile for transporting and use tax.    Sales tax is only an
>  issue when shipped within state.
>  
>  If you deliever then you have a presence in that state and will have to do
>  the taxes.
>  
>  If we could get out of messing with taxes to every state and local body,
>  that would be great.
>  
>  We made zip code the tax code.  Even then we get caught with different
>  rates depending on which county or city.
>  
>  
>  I am not a tax expert.   We have had issues with both type of customers.


MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)
AS/400 Data Manager & Programmer for BPCS 405 CD Rel-02 mixed mode (twinax 
interactive & batch) @ http://www.cen-elec.com Central Industries of 
Indiana--->Quality manufacturer of wire harnesses and electrical 
sub-assemblies - fax # 812-424-6838

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