Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0455 Postage and Handling Charge. A firm bills a standard "postage and handling" charge without regard to how close or far the customer is from the warehouse. In aggregate, it attempts to recover the total cost of transportation, but it does not have the ability to determine transportation costs on any particular item. While under conditions set forth under Regulation 1628(a) the retailer may deduct the actual cost of transportation when it makes a charge for "postage and handling," to be entitled to the exclusion it must retain records showing the actual cost of transportation for each individual transaction. If it fails to do so, the total of such charges is included in the measure of tax. 3/13/97.