Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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370.0000 Morticians—Regulation 1505
Annotation 370.0115
370.0115 Pre-Need Agreements—Pre-Need Contract Fee. A taxpayer's agreement to purchase pre-need burial rights, endowment care, merchandise and services lists the following fees: (1) cash price for merchandise (vault, liner, urn); (2) cash price for opening/closing; (3) cash price for pre-need contract; and (4) sales tax reimbursement. The pre-need contract fee is an amount to offset the increase in cost at the time of burial for both the merchandise and the services.
The gross receipts from the sale of the tangible personal property include the charges for the merchandise and the portion of the pre-need contract fee which represents the amount to offset the future increase in cost for the merchandise. This amount should be reported on the tax return for the period in which the burial services are rendered. (See Regulation 1505(c).) 12/30/96.