Why would Papa John's tax the delivery fee on my order?

[alb3rt]

I recently had a pizza delivered from Papa John's and I noticed on the receipt that the $1.50 delivery charge had been included in the amount that was taxed. So say, for example, that the purchase was $10 and the delivery fee was $1.50. I was taxed for $11.50 instead of $10. I was always under the impression that they could only tax the purchase, that the delivery fee was something different. Am I wrong? Why would they do that?

 

[Madeline]

I recently had a pizza delivered from Papa John's and I noticed on the receipt that the $1.50 delivery charge had been included in the amount that was taxed. So say, for example, that the purchase was $10 and the delivery fee was $1.50. I was taxed for $11.50 instead of $10. I was always under the impression that they could only tax the purchase, that the delivery fee was something different. Am I wrong? Why would they do that?

It most likely was an error. It may be theft by the company/franchise/store. It may be theft by an employee. It might -- though this is not likely -- be a legitimate charge. Some states do tax the sale of services.

 

[Douger]

They figured if you were stupid enough to order that garbage you wouldn't even notice.

 

[Skull Pilot]

In many states, mine included, sales taxes are assessed on services such as delivery.

 

[xotoxi]

I recently had a pizza delivered from Papa John's and I noticed on the receipt that the $1.50 delivery charge had been included in the amount that was taxed. So say, for example, that the purchase was $10 and the delivery fee was $1.50. I was taxed for $11.50 instead of $10. I was always under the impression that they could only tax the purchase, that the delivery fee was something different. Am I wrong? Why would they do that?

Excellent question for your first post ever at USMB!

After looking at your receipt, you probably thought "Who can I axe about this? Who would be the most knowledgeable?"

And obviously, only one place popped into your mind:

USMessageBoard.com

Very smart choice!

As for your question...I really have no idea. Just don't worry about it. I'm sure you won't go bankrupt because of that extra dime you lost.

 

[Mr. H.]

So did you tip the guy based on the price of the pizza?
The price of the pizza plus tax?
The price of the pizza plus tax and delivery?
The price of the pizza plus tax and delivery plus tax on the delivery?

Or did you just stiff the poor bastard.

 

[del]

i had no idea there were papa john's in indonesia

 

[Baruch Menachem]

It is between the KFC and the Carl's Jr. on Suharto Blvd.

 

[Mad Scientist]

The last pizza we ate was from WalMart. No delivery charge.

 

[vonbolical5]

wow

 

[Zoom-boing]

Is Papa Johns pizza good?

I have no idea if they tax the delivery charge here or not. Guess I'll have to get a pizza delivered and find out.

And whoever banned vonbolical5, thank you.

 

[syrenn]

I recently had a pizza delivered from Papa John's and I noticed on the receipt that the $1.50 delivery charge had been included in the amount that was taxed. So say, for example, that the purchase was $10 and the delivery fee was $1.50. I was taxed for $11.50 instead of $10. I was always under the impression that they could only tax the purchase, that the delivery fee was something different. Am I wrong? Why would they do that?

I think "delivery" is always taxed unless it states "free" delivery.

 

[Big Fitz]

You may thank your greedy state government socialists trying to shore up their overspending.

 

[ForestGirl]

As for your question...I really have no idea. Just don't worry about it. I'm sure you won't go bankrupt because of that extra dime you lost.

Oh gee...real intelligent answer (NOT) to a sincere and genuine question.

 

[xotoxi]

I can't believe that alb3rt was banned just because he prefers Papa John's over Dominoes!!!

 

[Bill O'Olberman]

Does a delivery charge mean I shouldnt tip the delivery guy? If theyre charging me a fee for delivery it would seem to me that the delivery guys pay is already being factored in...

 

[Quantum Windbag]

I recently had a pizza delivered from Papa John's and I noticed on the receipt that the $1.50 delivery charge had been included in the amount that was taxed. So say, for example, that the purchase was $10 and the delivery fee was $1.50. I was taxed for $11.50 instead of $10. I was always under the impression that they could only tax the purchase, that the delivery fee was something different. Am I wrong? Why would they do that?

It most likely was an error. It may be theft by the company/franchise/store. It may be theft by an employee. It might -- though this is not likely -- be a legitimate charge. Some states do tax the sale of services.

The service charge is part of the sale, and thus taxable in almost every state. (I actually want to say every state, but not being a tax expert I could conceivably not know of an exception.