Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
557.0000 TRANSPORTATION CHARGES—Regulation 1628
557.0600 Title Clause. The following will serve as a title clause where:
(1) Transportation is by retailer's own facilities;
(2) Transportation charges are separately stated;
(3) It is for transportation from the retailer's place of business or other point from which shipment is made to the purchaser; and
(4) The transportation occurs after the sale of the property is made to the purchaser.
"Title to the materials shall pass directly from the seller to the buyer at the shipping point prior to shipment. Seller shall set out and deduct freight charges prior to computing sales or use tax."
The required title-passage clause must appear on the confirmation, purchase order or other document evidencing passage of title prior to shipment. 1/28/91.