Sales Tax State Activity Update - June 2005

Florida Discusses Delivery and Setup Fees

The Florida Department Revenue concluded in a Technical Assistance Advisement that a separately stated delivery and setup fee that was incurred at the option of the purchaser is properly included in the taxable sales price.

A separately stated delivery fee that is imposed only at the option of the customer could be excluded from the taxable sales price of an item sold, however this was not the case in this particular instance. Installation charges, such as the setup, are subject to tax, regardless of whether the charges are separately stated, and imposed only at the option of the customer.

The term sales price is defined in Section 212.02(16), Florida Statutes, means the total amount paid for tangible personal property, including any services that are a part of the sale.

Rule 12A-1.045(2), Florida Administrative Code, discusses the sales tax as it relates to transportation charges, and it states: "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".

In this instance, since the delivery charge and the setup (installation) charge are made as a single amount, the charge is subject to tax.

The full text can be viewed here.

(Florida Technical Assistance Advisement, 05A-016, 03/29/2005 )

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