Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0106 Delivery Charges—Cabinets. A firm makes custom cabinets and delivers them to the customer, but does not install them. The delivery is by its own trucks and the firm's insurance company would pay for any damage to the cabinets if damage occurred during delivery. The firm's contract with its customers provides:
"Please indicate color, delivery date and appropriate options, sign and return one copy with check for one third of the total. Be advised that title to your completed custom cabinetry passes upon completion of the work at our shop."
The language in the contract is sufficient to pass title and separately stated delivery charges are not taxable. The insurance coverage is not a relevant consideration. 5/31/95.