Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 15 - Delivery Charges (280-RICR-20-70-15)
Section 280-RICR-20-70-15.5 - Delivery Charges
Current through September 18, 2024
A. "Delivery charges" are included in the "sales price" of property and therefore subject to sales tax if the property sold is taxable. If the property sold is exempt, delivery charges are not subject to sales tax.
B. "Delivery charges" 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.
C. "Delivery charges" shall not include the charges for delivery of "direct mail" if the charges are separately stated on an invoice or similar billing document given to the purchaser of "direct mail."
D. Taxable and Exempt Property Included in Shipment: If a shipment includes both exempt property and taxable property, the seller should allocate the delivery charges by using:
E. 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.
