are freight charges taxable in massachusetts
Delivery Charges means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing. Absent a claim for exemption by the customer, the price of the sale on which the tax is to be calculated is the total of all the books including the $1.00 delivery charge per book. (C) Vendor C, a home improvement store, sells a variety of items to its customers for their home improvement projects. Last year, negotiations between state officials and Amazon, which has an office in Cambridge and a technology firm in North Reading, led to the Massachusetts tax agreement that's about to go into effect. The company’s sales are currently taxed in 13 states. Massachusetts retailers hope the Amazon sales tax collections will help level the playing field and boost their holiday sales. “There’s no question that it will definitely help me,” said Ken Loring, president of the furniture retailer Boston Interiors. Charging Massachusetts sales tax on the freight insurance charges and separately stating the freight charges, freight insurance charges and the total amount of the sales tax on the invoices of the Massachusetts Customer is consistent with the Supplier’s billing practices for other customers. II. RULING REQUESTED. The Supplier charges Massachusetts sales tax at the current rate of 6.25% on the freight insurance charge. The freight insurance charge and the total sales tax applicable to a transaction are separately stated on all communications with customers. Supplier charges Massachusetts sales tax on the freight insurance charges. The freight insurance charges and the total amount of the sales tax on each order are separately stated on all communications with the Supplier’s customers. The following is your representation of the facts upon which this ruling is based. The full price of the sale is the selling price of the riding lawn mower plus the $50.00 delivery charge. Assuming that the customer does not have a claim for exemption, Vendor A must charge and collect tax on the full price of the sale that includes the $50.00 delivery charge. (B) Vendor B operates a book store in Ohio and will, for an additional charge of $1.00 per book, mail purchased books to its customers’ locations. If you’re considering making a big-ticket purchase on Amazon.com, you might want to do it before Friday. That’s when Massachusetts shoppers will start paying the state’s 6.25 percent sales tax on items they buy from Amazon. Continue reading below. The state Department of Revenue expects the tax to raise $36.7 million before the fiscal year ends June 30. In this situation there is no tax due on the $10.00 delivery charge. The charge is not a charge “. . . by the vendor for preparation and delivery to a location designated by the consumer of tangible personal property. . . ” under R.C. 5739.01(H)(1)(a)(iv). Refunds of sales/use tax on returned merchandise. Delivery Charges. (1) Delivery Charges are included in the sales price of property and therefore subject to sales tax if the property sold is taxable. If the property sold is exempt, delivery charges are not subject to sales tax.
Yes