DELIVERY
CHARGES FOR TAXABLE GOODS
AND SERVICES: (N.J.S.A.
54:32B-8.11)
As of October 1, 2006, delivery charges,
whether separately stated or not, are included in the
sales price and are subject to tax. Before October
1, 2006, delivery charges were included in the sales
price, unless separately state on the invoice, bill
or similar document given to the purchaser. “Delivery
Charges” means charges by the seller 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. If a shipment includes both exempt
and taxable property, the seller must allocate the
delivery charge by using: (1) a percentage based on
the total sales price of the taxable property compared
to the total sales price of all property in the shipment;
or (2) a percentage based on the total weight of the
taxable property compared to the total weight of all
property in the shipment. [N.J. Rev. Stat. 54:32B-2
(rr); Notice, Division of Taxation] Thus, only the
portion of the delivery charge that relates to the
taxable property or services is subject to tax.
The law modifies the exemption
for delivery charges that are separately stated from
the purchase price of an item on the invoice, bill
or similar document given to purchaser. The law provides
for the taxation of delivery charges on taxable items
and retains the exemption for delivery charges on nontaxable
items like clothing.
Seller’s cost of transportation
from supplier included in taxable receipts: Any
charge made to a retail purchaser, whether labeled
transportation, handling or some other designation,
which represents the seller’s cost of transportation
from a supplier, manufacturer, warehouse or catalog
or other distribution point to the vendor’s
place of business constitutes part of the taxable
receipts. [N.J. Admin. Code 18:24-27.2(a).] |
