Transportation, Freight, And Handling Charges

Sections 63-3612, 63-3613, Idaho Code 01. In General. Whether or not transportation and handling charges are separately stated, the sales price includes any charges made for delivery of goods to the seller. Charges for transportation and handling of goods to the consumer aren’t included as a part of the sales price regardless of when title passes. (7-1-26) 02. Charges Not Separately Stated. Regardless of other provisions of this rule, transportation and handling charges which are not separately stated are included in the taxable sales price. (3-31-22) 03. Charges for Delivery to the Seller. When a customer orders goods from a retailer and the goods are shipped to a store where the customer picks them up, the charge for delivery to the store is included in the taxable sales price. (7-1-26) 04. Freight-In Charges. If a seller of goods orders an item for a customer and the seller separately states fees for freight-in to the seller and freight-out to the consumer on the invoice, the fees for freight-in are part of the taxable sales price. The fees for freight-out aren’t taxable. (7-1-26) 05. Delivery by the Retailer. If a consumer orders goods from a retailer and the retailer delivers the goods to the buyer by means of the retailer’s vehicle. If the retailer separately states the charge for transportation and handling of the goods, the charge is for delivery and handling to the consumer, it isn’t taxable. (7-1-26) 06. Use of Transportation Charges as a Means of Avoiding Sales Tax. If a seller offers to give away merchandise worth approximately what the buyer pays for shipping, the entire price of shipping is taxable. (7-1-26) 07. Demurrage. Demurrage is a charge by a transportation company to its customer for detaining a ship, freight car, or truck beyond the time allowed for loading or unloading. Demurrage charges aren’t taxable when right, power, and control of the ship, freight car, or truck remains with the transportation company. (7-1-26)