ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.178. Transportation Charges.
(1) Where a seller delivers tangible personal property in his own equipment
or in equipment leased by him, the transportation charges shall be considered
a part of the selling price subject to sales or use tax. Said transportation
charges are taxable even if billed separately.
(2) Where delivery of tangible personal property is made by common carrier
or the U. S. Postal Service, the transportation charges shall not be subject
to sales or use tax if billed as a separate item and paid directly or indirectly
by the purchaser. To be excluded from the measure of tax, these transportation
charges must be separate and identifiable from other charges. Transportation
charges are not separate and identifiable if included with other charges
and billed as "shipping and handling" or "postage and handling". Indirect
payment of the transportation charges shall include those instances where
the seller prepays the freight to the common carrier or U. S. Postal Service
and is reimbursed by the purchaser.
(3) Where a seller contracts to sell and deliver tangible personal property
to some designated place and makes arrangements for delivery of the property
by means other than a common carrier or the U. S. Postal Service, the transportation
charges shall be considered a part of the selling price subject to sales
or use tax. Said transportation charges are taxable even if billed separately.
(Sections 40-23-1(a)(5) and 40-23-1(a)(6)) (Amended August 16, 1974, amended
October 29, 1976, readopted through APA effective October 1, 1982, amended
April 3, 1987)
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