TX 8712L0852F01 Sales and/or Use Tax (State,Local,MTA) 1987-12-17

Were transportation, delivery, and handling charges connected with taxable tangible personal property taxable when separately stated?

Short answer: Yes. Transportation and delivery charges for tangible personal property sold, leased, or rented were taxable even when occurring after the transaction and separately stated. Handling charges tied to a sale of taxable items were also taxable whether separately stated or not.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Disclaimer: This is a taxpayer-specific December 1987 Texas Comptroller letter based on an inquiry about postage and handling. It says the opinion may change if the facts differ. Although the STAR caption mentions a period before October 1, 1987, the operative letter states no transition date and gives no special pre-October holding. Transportation, delivery, handling, leasing, and sale-price rules may have changed substantially; verify current law and the taxable status of the underlying item. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Comptroller said transportation and delivery charges for tangible personal property that was sold, leased, or rented were taxable. That remained true when transportation occurred after the transaction and when the charge was separately stated.

Handling charges connected with a sale of taxable items were also taxable whether or not separately stated.

What this means for you

Under the historical letter, separating delivery or handling on the invoice did not remove the charge from tax when it was connected with the described taxable property or items.

Common questions

Were separately stated delivery charges taxable? Yes.

Did later transportation escape tax? No. The letter said transportation remained taxable even when it occurred after the transaction.

Were handling charges taxable? Yes, when charged in connection with a sale of taxable items, whether separately stated or not.

Did the body create a special rule for services before October 1, 1987? No. That language appears in the STAR caption, not the operative letter.

Citations and references

No statute or administrative rule is cited in the letter text.

Source

STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
Opinion: https://star.comptroller.texas.gov/view/8712L0852F01

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller December 17, 1987

Dear ***:

Thank you for your inquiry regarding the taxability of postage and
handling.

Transportation and delivery charges of tangible personal property sold,
leased or rented is taxable regardless whether or not the transportation
occurs after the transaction and is separately stated.

Handling charges are taxable whether or not separately stated when
charged in
connection with a sale of taxable items.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call our
toll-free
number 1-800-531-5441. The regular number is 512/463-4600. You may write
me
at the Tax Policy Division.

Sincerely,
(Mrs.) Jo Ann Dieck
Tax Policy Division

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