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

Friday, October 17th, 2014

 
 
Construction workers laying concrete.
Share
Link
Rhode Island
General

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.

http://www.tax.ri.gov/Tax%20Website/TAX/AdministrativeDecisions/2014/2014-23.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...