Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 295.1340


295.1340 Hazardous Waste Disposal Fees—Automobile Dismantlers. An automobile dismantler is required to pay fees for disposal of hazardous or toxic waste such as fluids withdrawn from wrecked automobiles, soil contaminated by oil or coolant leaks, and spills associated with its automobile dismantling operations. A substantial portion of the fees results from disposal of contaminated soil. The taxpayer passes on its costs as separately stated fees on invoices to its customers. The amount of fees passed on to customers is calculated as an allocation of the total of such fees paid by the taxpayer within a given period of time. Each customer is charged approximately fifty to sixty cents irrespective of the type of property purchased or the dollar amount of any purchase.

In this case, the charges are not for fees that are incurred because of repairs to the customer's vehicle. Instead, they are general fees incurred as a cost of doing business. The dismantler pays fees for disposal of fluids it withdraws from wrecked vehicles and for contaminating soil. Hence, such charges passed on to the customers who purchase tangible personal property are includable in the taxpayer's gross receipts. 2/20/96.