Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0452 Pick Up and Delivery—Reupholstered Furniture. A reupholsterer provides pick-up and delivery service in its own truck in connection with its reupholstering of customer's furniture. Where the reupholster does not require its customers to have the reupholsterer pick up the furniture from the customer, tax would not apply to the reupholsterer's reasonable charge for that pick up service. The reupholsterer should separately state the optional charge on its invoice to its customer. On the other hand, if it is a requirement of the sale (not optional to the customer), it is then considered a "service that is part of the sale" and the charge for the pick up service would be subject to sales tax. Where the reupholstered furniture is being delivered back to the customer in the reupholsterer's truck, the charge is taxable unless there is an explicit written agreement executed prior to the delivery that title is to pass to the customer prior to delivery. 7/11/96.