Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
"It is understood and agreed that title passes to buyer at shipping point. Seller to set out freight and deduct before computing sales or use tax."
Invoices issued by the seller did not separately state transportation charges, but did not include tax reimbursement on transportation charges.
The regulation does not require that transportation charges be separately stated on the invoice. The contract between the buyer and the seller clearly provides that title to the property sold passes to the buyer at the point of shipment and requires that transportation charges be set out and deducted and the invoice when read together with the standing order establish a separate statement of transportation charges. Tax does not apply to these transportation charges. 3/17/75.