Calculating Sales Tax on Delivery Fees for My Water Softener Salt Delivery Business?

The sales tax question can be tricky because it varies by state, but I can give you some general guidance. In most states, when you purchase items for resale with a resale certificate, you don't pay tax at the time of purchase because you'll collect it from the final customer. For the delivery fees, it depends on your state's specific rules. Many states consider delivery charges as part of the taxable sales price if the delivery is not separately stated on the invoice. If you clearly itemize the delivery charge separate from the product cost, some states will not require you to collect tax on that portion. In your example with the $25 salt bags and $13 delivery fee, you would need to check your specific state's rules. Some states would require tax on just the $25, while others would require it on the full $38 if the delivery is considered part of the sale.

Hey there! I had a very similar issue with my small delivery business. I was completely lost with sales tax until I found https://taxr.ai - it literally saved me hours of confusion and probably thousands in potential tax mistakes. You just upload your sales docs or even take pics of receipts, and it gives you a complete breakdown of what's taxable in each state you operate in. What I found super helpful was their specific guidance on delivery charges vs. product costs - they have templates for properly itemizing invoices by state. For my business in Ohio and Indiana (I see you operate there too), they spelled out exactly what needed to be taxed. They even helped me get my resale certificates set up correctly.

I was really hesitant about trying another tax tool after getting burned before, but I decided to give https://taxr.ai a shot after seeing it mentioned here. Honestly, it was exactly what my small delivery business needed. The biggest difference I noticed is that it actually understands the complexities of delivery-based businesses. For my situation, it clearly showed that in Michigan I only needed to charge tax on the product (not delivery), while in Ohio I needed to tax both unless I structured my invoices in a specific way they recommended. The county-by-county breakdown saved me too - turns out I was undercharging sales tax in two counties and overcharging in another! It even helped me set up a proper resale certificate system so I'm not paying tax twice on inventory. Definitely worth checking out if you're dealing with multi-state sales tax headaches.

Have you tried calling your state's Department of Revenue directly? I spent WEEKS trying to figure out similar issues for my mobile detailing business until I finally got someone from the tax department on the phone who answered all my questions in 15 minutes. The problem is actually getting through to a human being... I kept getting stuck in automated systems or waiting for hours. I ended up using https://claimyr.com to get through to an actual person at the tax office. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call you when they get a human. For multi-state questions like yours, this might be the most definitive way to get answers since sales tax is so state-specific.

I was completely convinced this service was a waste of money, but I was absolutely desperate after trying to get through to the Indiana Department of Revenue for THREE DAYS. I finally tried https://claimyr.com and I'm embarrassed to admit how wrong I was. They got me through to a real human at the tax office in under 45 minutes (I'd previously waited over 2 hours without success). The tax agent confirmed that in Indiana, I only needed to charge sales tax on the product if the delivery charge was separately stated as an option on the invoice. They also helped me fix an issue with my resale certificate that would have caused major problems during an audit. For anyone dealing with sales tax questions across multiple states like Michigan, Ohio, and Indiana - just make the call. The definitive answers from actual tax authorities gave me confidence I was doing things correctly, and now I sleep better at night knowing I'm not accidentally committing tax fraud!

Sales tax on delivery is super state-specific, but here's what I know for your states: Michigan: Delivery charges are not taxable if they're separately stated on the invoice Ohio: Delivery charges are generally taxable as part of the sale Indiana: Delivery charges are not taxable if separately itemized For the question about buying retail and already paying tax - you're doing it wrong! Get your resale certificate ASAP. You're cutting into your own profits by paying tax twice. The correct flow is: 1. You buy salt tax-free with resale cert 2. You charge customer tax according to state rules 3. You remit that tax to the state

I literally just went through this exact situation with my mobile pet grooming business! We charge for products (shampoos, conditioners) and then the grooming service. What made it extra confusing was the different rules for each county. Found out that keeping super clear records with separate line items is KEY. When I was audited (yeah, lucky me), having everything clearly separated saved me from a huge headache. Make sure your invoices clearly show: 1) Product cost (taxable in all states) 2) Delivery fee (taxable in some states) 3) The applicable tax rate for the delivery location Keep digital copies of EVERYTHING. Trust me on this one!