Are transportation charges subject to sales tax?
When a retailer sells tangible personal property or taxable services that are subject to tax and the retailer charges the purchaser for the delivery, the retailer’s total charge, including the transportation charge, is taxable. It is immaterial whether delivery is made by the seller’s vehicle, a common or contract carrier, or the United States Postal Service. Additional information relating to the taxability of transportation charges is contained in sec. Tax 11.94 Wis. Adm. Code, “Wisconsin sales and taxable transportation charges” A Wisconsin purchaser who purchases taxable goods without tax for use in Wisconsin is subject to use tax based on the “sales price” of the goods to the purchaser. The “sales price” shall include transportation charges paid by the Wisconsin purchaser to the seller for the shipment of the goods to the purchaser.
When a retailer sells tangible personal property or taxable services that are subject to tax and the retailer charges the purchaser for the delivery, the retailer’s total charge, including the transportation charge is taxable. It is immaterial whether delivery is made by the seller’s vehicle, a common or contract carrier, or the United States Postal Service. Additional information relating to the taxability of transportation charges is contained in sec. Tax 11.94 Wis. Adm. Code, “Wisconsin sales and taxable transportation charges” A Wisconsin purchaser who purchases taxable goods without tax for use in Wisconsin is subject to use tax based on the “sales price” of the goods to the purchaser. The “sales price” shall include transportation charges paid by the Wisconsin purchaser to the seller for the shipment of the goods to the purchaser. The “sales price” does not include transportation charges paid by the Wisconsin purchaser to a carrier which is independent from the seller when the PU
