13. Are shipping charges, freight or transportation charges subject to tax?

Transportation charges are not subject to tax if all three of the following requirements are met:

  1. Shipment is made directly to the purchaser, and
  2. The charges are separately stated, and
  3. The transportation occurs by common carrier, contract carrier, or U.S. mail.

Please note: If transportation charges are combined with other charges, such as “shipping and handling”, this does not qualify as “separately stated”. The charges are considered as part of the sale price and subject to tax.