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 557.0602

557.0602 Title Clause on a Delivery Ticket. A taxpayer sells a substance which is used to seal oil wells to prevent them from seeping. The taxpayer delivers the substance in its own trucks. The taxpayer's sales invoices, which are issued after the substance is delivered, separately state the transportation charges but do not contain a title clause. However, the taxpayer issues each of its customers a delivery ticket similar to a bill of lading which has a statement which reads: "Title to goods passes to customer at warehouse prior to shipment." The purchaser generally sees the delivery ticket at the time the purchaser orders the substance.

A delivery ticket is considered a part of the documentation for a sale and, therefore, a title clause on a delivery ticket is just as effective to express the intent of the parties as a title clause on an invoice. Thus, the separately stated transportation charges are not subject to the sales tax. 6/23/94.