Tax Rules: Final: 5703-9
5703-9-52 Delivery charges.
(A)(1) Charges by the vendor or seller for preparation and
delivery to a location designated by the consumer of taxable
tangible personal property or of a taxable service, including
charges for transportation, shipping, postage, handling,
crating, and packing, are defined as part of the price for
determining the tax.
(2) Charges paid by a customer to a delivery company, and not
imposed or collected by the vendor or seller of the delivered
property or service, are not subject to sales or use tax.
(B) A vendor or seller should allocate the delivery charge in
any shipment to a consumer that includes separately stated
taxable and exempt property by using either of the following
(1) The ratio of the total sales prices of all taxable
property in the shipment to the total sales prices of all
property in the shipment, or
(2) The ratio of the total weight of the taxable property in
the shipment to the total weight of all property in the
(C)(1) When a vendor or seller allocates a delivery charge as
provided in paragraph (B) of this rule, the vendor or seller
must tax the portion of the delivery charge allocated to the
taxable property but not the portion allocated to the exempt
(2) If a vendor or seller does not allocate the delivery
charge in any transaction as described in paragraph (B) of
this rule, and any portion of the transaction is taxable, the
vendor or seller must charge tax on the entire delivery
charge for the shipment.
(D) In any case where a vendor or seller allocates a delivery
charge in accordance with paragraph (B)(1) or (B)(2) of this
rule, no refund shall be allowed based on an objection to the
method of allocation chosen.
Promulgated under: 5703.14
Authorized by: 5703.05