Are Freight, delivery or other transportation charges subject to sales tax?
Freight, Delivery and Other Transportation Charges Effective October 1, 2005, all freight, delivery and other transportation charges are considered to be part of the selling price. If the sale is taxable, the freight, delivery and other transportation charges that are part of the sale and billed by the seller are always taxable. This includes other transportation charges identifi ed as shipping and handling charges or fuel surcharges. If the product being delivered is exempt from sales tax, then the freight, delivery, and other transportation charges are also exempt. Delivery charges billed directly to the customer by a third party delivery service that are not making the sale of tangible personal property remain exempt from sales and use tax.
Freight, Delivery and Other Transportation Charges Effective October 1, 2005, all freight, delivery and other transportation charges are considered to be part of the selling price. If the sale is taxable, the freight, delivery and other transportation charges that are part of the sale and billed by the seller are always taxable. This includes other transportation charges identifi ed as shipping and handling charges or fuel surcharges. If the product being delivered is exempt from sales tax, then the freight, delivery, and other transportation charges are also exempt. Delivery charges billed directly to the customer by a third party delivery service that are not making the sale of tangible personal property remain exempt from sales and use tax.
