• 16 minutes

Drop Shipments: How Much Is the Sales and Use Tax


Computing sales and use tax can be messy.

The sales tax rate must be equal to the use tax rate. If they were different then that would violate part of the United States Constitution called the Dormant Commerce Clause. Because Congress has the ability to regulate commerce between states that states are not permitted to do so. If states could tax out-of-state businesses more heavily than an in-state business that would violate the commerce clause. This has clause has been brought up in a number of cases, including the more familiar Wayfair case. This video reviews how tax is imposed on final sales price and discusses is shipping and handling fees are taxable.

Runtime: 15 minutes



Matthew E. Foreman, J.D., LL.M.

Matthew E. Foreman, J.D., LL.M.

Falcon Rappaport & Berkman LLP

· Partner and Co-chair of the Taxation Practice Group at Falcon Rappaport & Berkman LLP

· Advises businesses on the tax effects of a variety of corporate transactions, including taxable and tax- free reorganizations, mergers, sales, and acquisitions

· Advises clients on a variety of tax issues related to cryptocurrencies, including initial coin offerings (ICOs), taxability of staking and air drops, taxability and governance of DAOs, and the imposition of Sales and Use taxes on the issuance of non-fungible tokens (NFTs)

· Admitted to practice law in New York State and New Jersey, and admitted to practice before the United States Tax Court; Member, New York City Bar Association; Secretary, State and Local Tax Committee of New York City Bar Association; Member, Task Force on Digital Technologies; Member, Tax Section of New York State Bar Association

· Rated as a New York Metro SuperLawyer in the field of Taxation

· LL.M. degree in taxation, New York University School of Law; J.D. degree, The Pennsylvania State University, Dickinson School of Law; B.S. degree, University at Albany, State University of New York

· Can be contacted at 212-203-3255 or [email protected]

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