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ST 2006-01- Sales and Use Tax: Funeral Transactions - Issued
October 2006
The Sales and Use Tax Division of the Ohio Department of
Taxation is proposing to adopt an amendment to rule 5703-9-32
of the Ohio Administrative Code dealing with the application
of the Ohio sales and use tax to funeral transactions. Prior
to adopting it, the Ohio Department of Taxation (ODT) is
seeking public comment on the draft of that rule. Public
comment on this rule should be addressed to:
William Riesenberger
Counsel, Sales and Use Tax Division
Phone: 614-466-4810
FAX: 614-995-5797
E-mail: william_riesenberger@tax.state.oh.us
Please make any comments directly related to this proposed
rule by the end of the business day on October 27, 2006.
Reason for rule. The Tax Commissioner is
taking this action to modernize the existing rule to more
accurately reflect current funeral practices and to revise
the treatment of limousine service provided as part of a
funeral transaction to more accurately reflect the fact that
tax is imposed on the intrastate transportation of persons.
Draft of Rule 5703-9-32 Sales and Use tax: Funeral
Transactions Morticians.
(A) Morticians and funeral directors
are the retailers of the following all items of tangible
personal property and taxable services
which must be separately stated in the billing and tax
collected on the full selling price:. Examples of such tangible
personal property and services include, but are not limited
to:
(1) Clothing
(2) Vaults – all kinds
(3) Outside containers (except pine box furnished with
casket)
(4) Flowers (Not including the Door Piece or Badge)
(5) Caskets
(6) Urns or other
containers for ashes from cremation
(7) Limousine
service if entirely within Ohio
(8) Guest books and
prayer cards
(B) Morticians render the following Personal and
professional services which may be that
are not subject to
tax should be stated separately itemized and on
which no tax shall be collected: from the taxable tangible
personal property and services in the billing. Examples
of nontaxable personal or professional services include, but
are not limited to:
(1) Funeral notices
(2) Gratuities to clergyman and pallbearers, churches, etc.
(3) Cash advances
(4) Charges for all limousines exceeding two in
number (charges for the first two limousines shall be
included in the complete funeral charge)
(5) Transportation of the remains
(6)
Cremation
(7) Use of the
funeral home or chapel for showing or services
(8) Counseling or
other professional services
(C) All other charges, such as the charge for a complete
funeral service including casket complete, door pieces or
badges, embalming and care of the remains, hearse, two
limousines or less, use of funeral chapel and establishment
and professional service, shall be totaled in determining the
complete funeral charge and the tax computed on fifty percent
of the balance.
Morticians and
funeral directors are the consumers of such
articles as embalming fluids, cosmetics, various items or
instruments used in embalming all items of tangible personal
property or any taxable services used in performing their
personal or professional services and shall pay the
tax on the purchase of such articles. Examples of such
items include, but are not limited to:
(1) Embalming
fluids, cosmetics, and instruments used in preparation of the
remains
(2) Crematory
equipment and supplies
(3) Funeral home or
chapel furnishings
(4) Motor vehicles
used for transporting the remains
In those cases where cremation is to be substituted for
burial, the same rules apply as to taxability, except where
no casket or articles of tangible personal property are
furnished, in which case service only is supplied and no tax
shall be collected.
(D) Cemetery
associations are vendors of all items of tangible personal
property sold such as vaults, and markers, including
grave and lot markers, and are responsible
for the collection of the tax on taxable transactions.
(E) If the
casket and remains are to be shipped to a point outside the
State, no Ohio tax shall be
collected by the Ohio mortician or funeral director for
the tangible personal property shipped.