I noticed the following after reading an order confirmation from Monoprice.com:
Effective January 1, 2010, Monoprice, Inc. will be collecting sales tax on shipping and handling charges on orders shipped to destinations within the State of California. Sales tax is charged on the products and also on the shipping and handling amount.
I don't think MonoPrice made the right decision to collect sales tax on both shipping and handling when they only need to collect tax on the handling portion. MonoPrice's success has been built upon offering quality products at great prices to its customer base. Why nickle and dime their customer base when they don't need to?
According to the state entity that collects taxes, "Tax does not apply to the delivery charges under these conditions if the charges are clearly stated as a separate entry on the invoice or other bill of sale. If the delivery charges are not stated separately, they are taxable."