Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
(e) TAXES AND FEES (GOVERNMENTAL)
295.1248 Inspection Fees. The Federal Motor Carrier Safety Regulations require an annual inspection of trailers. The motor carrier cannot use the trailer unless the trailer has passed such an inspection at least once during the preceding twelve months and a copy of the inspection report is in the vehicle. A company offers the inspection to its customers in conjunction with the sale of trailers and states that this is an optional charge.
Assuming that the inspection occurs after the trailer is sold and that the contract documents and/or sales literature substantiates that this is truly an optional charge, the optional inspection is not a part of the sale. The inspection service charge should be excluded from the measure of gross receipts which are subject to sales and use tax. 5/9/91.