Florida Regulations 12A-1.045: Transportation Charges
Current as of: 2024 | Check for updates
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(1) “”Transportation charges”” include carrying, delivery, freight, handling, pickup, shipping, and other similar charges or fees.
(2) Transportation charges which are not separately stated on an invoice or bill of sale, but are included in the sales price of taxable tangible personal property, are subject to tax.
(3)(a) Where the seller agrees to deliver tangible personal property to some designated place and the purchaser cannot elect to avoid the charge for transportation services, the charge for the transportation service is subject to tax, even if separately stated on an invoice or bill of sale.
(b)1. Example: X is in the business of selling liquefied petroleum (L.P.) gas, gas tanks, and other related equipment. Y agrees to purchase a 500 gallon above ground tank from X to be placed at Y’s place of business and to make future purchases of L.P. gas from X. X requires a delivery fee of $25 for each L.P. gas tank that it sells and will not allow the customer to pick up the tank nor make arrangements with any other transportation company to deliver the tank to the designated place. Since the $25 delivery fee is required by the seller and is not an option to the buyer, the invoice correctly includes the $25 delivery charge in the amount subject to tax as follows:
500 Gallon L.P. Gas Tank
Terms Used In Florida Regulations 12A-1.045
- Personal property: All property that is not real property.
(3)(a) Where the seller agrees to deliver tangible personal property to some designated place and the purchaser cannot elect to avoid the charge for transportation services, the charge for the transportation service is subject to tax, even if separately stated on an invoice or bill of sale.
(b)1. Example: X is in the business of selling liquefied petroleum (L.P.) gas, gas tanks, and other related equipment. Y agrees to purchase a 500 gallon above ground tank from X to be placed at Y’s place of business and to make future purchases of L.P. gas from X. X requires a delivery fee of $25 for each L.P. gas tank that it sells and will not allow the customer to pick up the tank nor make arrangements with any other transportation company to deliver the tank to the designated place. Since the $25 delivery fee is required by the seller and is not an option to the buyer, the invoice correctly includes the $25 delivery charge in the amount subject to tax as follows:
500 Gallon L.P. Gas Tank