Charges for Pump Truck Use Part of Taxable Sale Price of Concrete

Friday, October 17th, 2014

Construction workers laying concrete.
Rhode Island

The Rhode Island Division of Taxation ("Division") recently released a decision that fees charged for a concrete pump truck services were subject to tax.

The taxpayer sold ready-mix concrete and delivered it to various sites. For most job sites, the taxpayer delivered the concrete in a mixer truck and poured it into a designated area. If the mixer truck could not reach the designated area, the taxpayer had to use a pump truck. The pump truck could not deliver concrete to the job site, so the taxpayer delivered the concrete to the site in a mixer truck and poured the concrete using the pump truck. Customers paid separate charges for the concrete, for the delivery of the concrete to the job site, and for the use of the pump truck.

Rhode Island taxes sales of tangible personal property. Tax applies to the sale price. The sale price includes delivery charges and charges by a seller for any services necessary to complete a sale. A "delivery charge" is a charge by a seller for preparation and delivery to a location designated by the purchaser.

The Division decided that the charges for the pump truck were delivery charges. The pump truck was used to move the concrete to a location designated by the purchaser. The charges were therefore part of the sale price of the concrete and subject to tax.

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