PURPOSE: This rule interprets the use tax law as it applies to delivery, freight and transportation charges and interprets and applies section 144.605(6), RSMo.

1. (1) Delivery costs, including postage and transportation costs, are subject to sales tax if the parties intend for delivery to be part of the sale.
2. (2) Delivery costs, including postage and transportation costs, are not subject to use tax if the parties do not intend for delivery to be part of the sale.

3. (3) Some factors relevant to the determination of the parties’ intent are—

   1. (A) When title passes to the purchaser;
   2. (B) Whether delivery charges are separately stated on sales invoices;
   3. (C) Whether the method of delivery is entirely up to the purchaser;
   4. (D) Whether the purchaser has the option to take the tangible personal property, hire a carrier or use a carrier selected by the seller;
   5. (E) Whether the seller derives any financial benefit from the delivery and undertakes any risk for damage or loss during delivery; and
   6. (F) Whether there is a written agreement between the parties.

AUTHORITY: section 144.705, RSMo 1994.* Original rule file Oct. 1, 1993, effective April 9, 1994. *Original authority: 144.705, RSMo 1959.