Tax taken out?

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bluebonnet

bluebonnet

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Dec 4, 2005
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Houston
www.westhoustonflorist.com
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tx
Here's the deal..... wired an order out today by phone of course, total of $55, so the person on the other end says minus the del. which is $10 I said fine, now plant is $45, she then says and minus tax of $4.95, I said what? so now that makes the plant $40.05, so is that tax on the $55 or $45? I forgot to ask, I was so shocked!
She said tax, the tax we have to take out too! I said how is that on a WS order?
Ok.....I have been in this business 32 years, and please would someone help me understand what I have missed! I thought I charged the tax, paid my state what I charged on the sales tax, call the order out and give them the $ amount totaling item plus delivery. So, what I have gotten out of this is basically my customer did not get $55 worth and yet paid me sales tax plus the florist that filled the order sales tax on one purchase, which means my customer got jipped by having to pay tax twice? So now does this mean I am an OG or they are a Fill Gatherer? I'm not trying to be stupid here but did I miss something on turbo tax in years past or my CPA hasn't said anything about adding subtracting, I tell you right now I am very confused.....
For the curious ones the call was made to St. Petersburg, Fl. Do ya'll in Fl have some different laws about charging customers 2 times the sales tax in 2 different states?
Someone please clarify this for me before I do my taxes this year!!!!!!

Confused and Frustrated,
Cyndi
 
Currently we do not. If you call me in Fla and give me a $50.00 total, I will tell you that the delivery to that area is ie: 10....so you have the option of adding to the amount or being made aware that the recip will recieve app a 40 piece. There has been talk of adding tax to out of state orders WIRE ORDERS but so far it is only tax....I would call her back and ask her why. Seems like she has the policy backasswards.
Now if you call as a sending florist and place it on your credit card, Fla State does require that I have your States tax exemption certificate on file...so far we have dozens. If you do not fax it to me in a reasonable amount of time, then I will charge your cc with the tax...and you are told this at the get go. But double taxation is what she has done and that isn't currently legal.
S
 
Irony of double taxing

Sher,
thanks for the info, we do the same if the sending florist is using a credit card and they fax me their sales tax certificate. But in this case I used a WS to wire out of a total of $55, which I knew the delivery would be in the $8-$10 range which was fine, but her telling me she needed to take out $4.95 is what your state apparently is wanting to do and they have just jump the gun! Which would make since in discussing this state wise in legislature because of your active florist telling them that the customer would be taxed 2 times in 2 different states.

The irony of this is in the future say if all 50 states were to do this, then no one would send thru the wire service! (ending the WS's) It would all be handed direct credit card to florist. It's funny how taxing double would get to many florist and delete WS action but the OG overcharging doesn't effect anyone......(because you still have the newbie fillers that think they are still making money!)

thanks again,
Cyndi
 
Sounds more like a For-Profit Tax that will go in the owners pocket.

For those of you curious, that $4.95 "tax" on the $45 order equals an 11 pct tax.

Does FL have an 11 pct sales tax?

joe
 
you know.....

tax laws are so weird, that EVEN tax auditors cannot wrap their brains around what is correct procedure, and what is guessing, in our industry!!
I know here, that 4 different shops, can be audited by 4 different tax auditors, and each will come up with THEIR OWN VERSION, of how incoming AND outgoing orders are to be handled!!
I know you're thinking, that maybe this shop is ripping your order.....it's probably true, however, not ALWAYS does a duck quack...sometimes they "warble" a little, and most florists are NOT correctly equipped to challenge an onsight auditor with fact sheets on hand!!
Before setting up your firing squad...call the shop again...ask them to clarify the questioned tax, ask them why they are charging an "illegal" tax, and ask them why IT IS, that they CAN charge this "tax"!!
Report them to the wire service, for a quality assurance audit by the wire service....they DO ACTUALLY do these things, if you trigger a legitimate complaint!!
Let us know how you do...this is interesting, to say the least!!
 
Thanks for the advise Mikey! Matter of fact it was FTD I had sent it with. So now I understand what my quality control (thought it was just for the flowers) fee is for, but....... if I were to say call FTD, forget the shop right now I would wonder how they would handle that. Would it be the FBC go in there and tell them I'm sorry but you can charge people double tax, I mean would he have the IRS to back him? I don't think so. I personally would think the FBC wouldn't even go into this touchy situation with telling people how to run the finance management of their business.(I GUESS THAT'S WHY I AM NOT A FBC!!) I would hate to do that kind of a job.
But as you suggested I will be calling the shop tomorrow and asking why was this done, as well as I will be calling FTD to deal with this matter.

I'll let ya'll know the results, same channel about the same time!LOL
Cyndi
 
For years and years there has been a tax law in all states in the US regarding flowers by wire being non taxable at the receiving florist state..and all states requiring tax had that tax only on the service provided in that state..example.. your order in Tx was taxable for whatever service charge you received- but both product and delivery charge (in Fl.) was not taxable since non of that service or product happened in your state of Tx..

In Canada this is not true. Canada requires all filling florists in Canada to deduct and pay to their local provence tax on product and service (I think).. sending florists in Canada collect tax from the customer for their service & product (even though another florist is using their own product) and this collected tax is exchanged (kinda like almost) on the wire service statement at the end of the month.. (Thank goodness the Canadians are better at math than us because their wire service statements are complicated)

But lately many states are banding together to try to get tax on internet orders and setting up new combined taxes where the states somehow re-interpret the tax laws.. not sure how collecting tax in Tx gets that tax to Florida .. but that is the complicated issue today.

As for an FBC addressing this issue with the Florida florist..that is what his job is.. informing florists as to the laws as they relate to FTD and it's services. FTD is an 'order transfer" business as I think it is stated somewhere in their prospectus.. so they should be up to date on all the legalities this business entails and should be advising their customers (us, the florists) how to do this tax thing.
 
Texas Law

I had double checked Texas law on this a while back. The tax cannot be charged twice. It is on the website for the sales tax part of the Texas Comptroller's office. It took me a while to find it, but if you search florist it will come up.

Donna
 
Gawd!! Joe, let's be discreet on the age..... ok? LOL

Donna, I know that but the tax became doubled on the FLORIDA side!! The shop on the other end charged me $4.95 tax taking out along with delivery from originally $55. plant.

Didn't get the chance to do the calling today, was busier than crap today! I think that's a good thing, right? Anyways at least it felt good! Thought it was the starting of VD week.

Let ya know what the results are tomorrow,
Cyndi
 
THE RESULTS!!!! drum roll please! LOL

:musical: FTD said tax is charged one time by the SENDER ! Incoming orders by law do not charge tax.

To resolve matter of order not filled to value, I have to call in for an ajustment (meaning those yellow & gold slips via mail) or for florist to refill order to value today or can call another florist to get the order of full value delivered. Since I was told 3 times by order taker that tax is taken out , while explaining this is an incoming FTD order I decided not to argue and call my fav that is not open on sats.

When the slip goes out the FBC will follow in person to explain to shop that taxing on incoming orders is not legal.

OK..... everyone can STOP bitting nails now! LOL

Cyndi
 
bluebonnet said:
:musical: FTD said tax is charged one time by the SENDER ! Incoming orders by law do not charge tax.

Cyndi
Click to expand...

Please be aware this is not the case in Canada... their laws are different. so expect orders sent to Canada to have the taxes taken out. You can call FTD and verify it..but their tax laws are different than ours.. and alot higher.. but then they have some really neat benefits like national health insurance etc.
 
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