Are shipping or delivery rates subject to sales and use tax?

When a retailer sells tangible personal property at retail and charges the customer a delivery charge for delivery via the retailer's own trucks, then the delivery charge is considered part of the tax base upon which the tax is calculated and subject to the Sales and Use Tax.

When a retailer sells tangible personal property at retail and charges the customer a delivery charge for delivery via a common carrier and the delivery terms are FO.B Destination, then the delivery charge is considered part of the tax base upon which the tax is calculated and subject to the Sales and Use Tax.

When a retailer sells tangible personal property at retail and charges the customer a delivery charge for delivery via a common carrier and the delivery terms are FO.B Shipping Point, then the delivery charge is not considered part of the tax base upon which the tax is calculated and is not subject to the Sales and Use Tax.

When a retailer sells tangible personal property at retail and charges the customer a delivery charge for delivery via a common carrier and the delivery terms are not specified, then the delivery charge is considered part of the tax base upon which the tax is calculated and subject to the Sales and Use Tax. However, in no event may a seller deduct costs of bringing property to his place of business or costs of delivering property from factory to his customer when such factory-to-customer transportation is paid by the seller either to a transportation company, the manufacturer, or by way of credit to his customer for transportation costs paid by the customer and deducted from seller's invoice.

Note: If the retailer sells tangible personal property at retail and the sale qualifies for an exemption, then the entire tax base upon which the tax is calculated (including any delivery charges associated with the exempt sale) is exempt.