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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
S
495.0000 Sale
Annotation 495.0455
(a) In General—Definition
495.0455 Scrap Materials Sold to Teachers and Children's Groups. A taxpayer collects donations of local industrial discards, most of which have little retail value. The taxpayer makes the materials available to teachers and children's groups for use as art supplies or learning materials. The taxpayer charges a general shipping and handling fee to help cover the costs of transportation from the donor to the taxpayer's warehouse and for handling within the warehouse. The charge is based on the volume of materials. For example, a grocery bagful of discarded materials may bear a charge of $5.
The transfers are retail sales subject to tax. The shipping and handling fee is also subject to tax because it is a cost of doing business and is a part of the sales price. 10/14/94.