[ic] Handling charges taxable when shipping charges are?

[Mort]

Quoting Josh Lavin (jlavin at endpoint.com):
> List folk,
> 
> It seems that Interchange does not apply sales tax to Handling charges,
> even when Shipping charges are set up to be taxable.
> 
> e.g.
> 
>     config:  TaxShipping TX
>     variable:  TAXRATE TX=8.25
> 
>     subtotal: $19.99
>     shipping:   5.38
>     sales tax:  2.09  (25.37 * .0825)
>     handling:   5.00
>    ------------------
>     total:    $32.46
> 
> This is a problem at least for Texas, where both shipping and handling
> charges are to be taxable:
> 
>     "Shipping and handling charges are taxable if the charges are
>     associated with the sale of taxable goods or service."
> 
>     http://comptroller.texas.gov/taxinfo/sales/faq_collect.html#collect8
> 
> It seems that several other US states are in the same situation:
> 
> https://www.boe.ca.gov/formspubs/pub100/
> https://revenue-pa.custhelp.com/app/answers/detail/a_id/214/~/are-shipping-and%2For-handling-charges-subject-to-sales-tax%3F
> http://www.floridasalestax.com/Florida-Sales-Tax-Rules/12A-1-045.aspx
> http://www.stateandlocaltax.com/noteworthy-cases/handle-with-care-shipping-and-handling-fees-subject-to-arizona-transaction-privilege-tax/
> 
> I wonder if others have experienced this?
> 
> Or is anyone in a locale where your situation is different -- where
> shipping is taxable, but handling is not?
> 
> It seems this patch to Interpolate.pm would fix it (around line 5752):
> 
>      foreach $code (@code) {
>              next unless $Vend::Cfg->{TaxShipping} =~ /\b\Q$code\E\b/i;
>              $amount += tag_shipping();
>  +           $amount += tag_handling();
>              last;
>      }
> 
> But to make this change to core IC would mean that all existing IC
> catalogs with taxable shipping would start having handling taxable, even
> if it wasn't before.
> 
> If this is considered a bug, then such a change would be a good thing.
> 
> An alternative change would be to add a new config, "TaxHandling", and
> process it in a separate for() block than shipping. This would thus
> require a configuration change for it to take effect.
> 
> Thoughts?

If we are going to make a change, I think we should add TaxHandling
so that the change is willful. That way if someone needs it, they
can make it, but it won't break existing people.

-- 
Mike Heins
End Point -- Expert Internet Consulting    http://www.endpoint.com/
phone +1.765.253.4194  <mikeh at endpoint.com>

Socialism -- ideas so good they have to be enforced at gunpoint.
-- unknown