Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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R

490.0000 RETURNS, DEFECTS AND REPLACEMENTS—Regulation 1655

Annotation 490.0583

(c) WARRANTIES

(2) Warranty Charges—When Includable In Tax Measure

490.0583 Mail Order Form—Preprinted Insurance Charge. When a retailer who sells property via mail order preprints a charge of $1.50 for insurance on a separate line in the total column on its order form, the charge is includable in the measure of tax as a mandatory charge. The fact that some customers may cross out the charge and refuse to pay it does not make it optional. For a charge to be truly optional for purposes of the Sales and Use Tax Law, the order form must clearly and unequivocally state that the charge is optional and may be crossed out by the customer. 10/2/97. (M98–3).