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You can thank our wonderful government for taxes. If you are being taxed for something that money goes to the government so yes it is legal. A company wouldn't tax you for an item unless the government makes them tax you for it. A company is nothing more than an unpaid tax collector when it comes to taxes.

Added: Check your state tax codes carefully. In some states it is unlawful to tax an intangible "service." Something for which no actual tangible or identifiable "product" is delivered. (e.g.: You can tax a quart of milk or a loaf of bread, but you can't charge tax for the smile the cashier gives you as you check out).

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Q: Is it legal to tax a service charge?
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