SALT Report 2787 – The Indiana Department of Revenue has updated a sales and use tax directive regarding the application of sales and use tax for delivery and installation charges to reflect recently enacted legislation.
Specifically addressed is the amendment to IC 6-2.5-1-5 which removed separately stated postage charges from the definition of “delivery charges that are part of the gross retail income of a transaction” and subject to sales tax. As a result of that amendment, separately stated postage charges to deliver mail or parcels through the U.S. mail are exempt from sales and use tax.
Additionally, IC 6-2.5-4-1 was amended and now reflects that the transfer of tangible personal property in a retail transaction does not take place until after delivery.
These provisions are effective July 1, 2013.
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