R.I. Government Agencies | Privacy Policy |
State of Rhode Island
Division of Taxation
One Capitol Hill
Providence, RI 02908
(1) means charges by the seller of personal property or services 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. Tax applies to delivery charges for taxable property. Tax does not apply to delivery charges for exempt property.
“Delivery charges” shall not include the charges for delivery of “direct mail” as defined under R.I.G.L. 44-18-7.1(j), if the charges are separately stated on an invoice or similar billing document given to the purchaser of “direct mail.”
(2) Taxable and Exempt Property Included In Shipment: If a shipment includes exempt property and taxable property, the seller should allocate the delivery charges by using:
a. a percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or
b. a percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment.
The seller must tax the percentage of the delivery charge allocated to the taxable property but does not have to tax the percentage allocated to the exempt property.
For further information on Delivery Charges refer to: Regulation SU 07-33
