Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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557.0000 TRANSPORTATION CHARGES—Regulation 1628

Annotation 557.0105

557.0105 Delivery Charges—Bank Checks. A bank orders personalized checks to be delivered directly to its customer. The printer bills the bank for the checks plus sales tax reimbursement and postage, which are all separately stated. The bank debits the customer's account for a lump-sum amount including the sales tax reimbursement paid to the printer and the postage charges.

The bank is the retailer of the checks and is required to collect the use tax on the sales price of the checks sold. The bank is not acting as an agent of the customer. Since there were no separately stated charges by the bank for delivery, the amount attributable to postage is not excluded from gross receipts. 7/2/73.