Why is tax being calculated on shipping/freight in California?
Overview
| One of our customers in California is being charged tax on the sale plus shipping. My understanging is that in California freight/shipping is not taxable |
Environment
Avalara Avatax
California
Resolution
| Tax Code FR030000 stands for Shipping And Handling Combined which is taxable in California. Tax Code FR is for freight alone, which is indeed nontaxable in California. |
Cause
Customer was using the tax code for shipping and handling combined and not just freight itself.