12A-1.017. Finance and Interest Charges and Carrying Charges on Installment Sales

The amount paid by any purchaser as interest or as a finance charge is taxable unless such interest or finance charge is separately stated from the consideration received for the tangible personal property transferred in a retail sale. For example, where articles are sold in a taxable transaction under an installment payment arrangement, retail title contract or purchase money mortgage for a stated amount payable in installments at intervals over a period of time, the entire amount is taxable. If, on the other hand, a cash selling price is stated and interest and carrying charges are added thereto as separate and distinct items, only the cash selling price is taxable.