For nearly 6 weeks now Buy.com has begun charging sales tax here in Indiana because they have an "entity" here.

But what really bothers me about the tax is that Buy is computing it illegally. Specifically, they are adding all purchases, adding shipping and then computing the tax on the total.

If you have a discount, they deduct it from the grand total, instead of deducting it BEFORE the tax is computed.

I have sent certified letters to both the State of Indiana and Buy.com nearly a month ago about correcting their computations, but to date, I have not received any response.

dvdirv

Just to let you know that company's are suppose to charge sales tax on shipping and handling. As for them taking off the coupon after the tax is applied, they must also charge tax for the entire amount of the items purchased.

Just to let you know about how I know this. Well, I have been in the retail business for over 15 years. I also have managed a large online dvd company, which I will not mention the name (no not buy.com). And I currently own another online dvd company, which I also will not mention the name.

So the reason you haven't had any replies from buy.com, is that they are doing what they are suppose to.

When this issue first came up, I called our state tax office and asked how they are supposed to collect the tax and they indicated that shipping was to be excluded from their tax computations.

you may want to call them again and ask a slightly different question. Ask if shipping and handling are taxable. Also, if they don't break out the component charges, can they tax you on the whole. That is what CH does here in CA. Supposedly they can do it because it is not just shipping

Get 'em dvdirv!