Laws, Regulations and Annotations

Search

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   


R


480.0000 Retailer

Annotation 480.0700


480.0700 Special Order Placed for Customers. A taxpayer conducts a business for the taxpayer's customers of obtaining stereo and related equipment by way of mail order from out-of-state suppliers. A customer will complete an order agreement whereby the customer agrees to the terms and price of the piece of equipment. The taxpayer then calls an out-of-state supplier and places an order for the equipment. The supplier ships the equipment C.O.D. to the taxpayer. Upon receipt of the merchandise, the taxpayer informs the customer who then picks up the merchandise at the taxpayer's place of business. At the time of pick up, the customer pays for the merchandise a price which consists of the cost of the merchandise, shipping and handling, and a percentage mark up.

The facts involved in this situation are similar to that of a catalog store or a "special order" placed for a customer by a department store. In both of these situations, the sale which takes place when the item ordered is delivered to the customer is a retail sale. Therefore, the taxpayer is a retailer of the merchandise it orders and then transfers to its customer, and tax applies to the total gross receipts of such sales. 2/22/78.