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 557.0107

557.0107 Delivery Charges—Food Product. When transportation occurs before the sale of prepared food is made to the purchaser, sales tax will apply to the charge for transportation. However, if the sale is not taxable, such as cold sandwiches, the transportation charges would not be taxable since the sale of the sandwich is not taxable. In the event that some of the sales are taxable such as carbonated beverages and other separately stated items are not taxable such as cold sandwiches, the taxable delivery charges should be added separately for all taxable items and separately for nontaxable items. When delivery charges are separately stated in this manner, it would help to ensure that the sales tax reimbursement collected is based on taxable delivery charges. 1/25/94.