Local Sales and Use Tax application is based on the point of delivery. Delivery of tangible personal property occurs when and where title or possession of tangible personal property transfers from the retailer to the retailer's customer. The following are guidelines to be used in determining when and where delivery occurs:
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FOB Destination or Similar Terms: Delivery is considered to take place at the purchaser's location or wherever delivered to the purchaser (at the purchaser's direction).
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FOB Shipping Point or Similar Terms: Delivery is considered to take place at the retailer's location. Retailers with multiple retail locations are to maintain their records so as to clearly show which sales are attributable to each location.
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Shipping Terms Are Unspecified: Delivery is considered to take place at the purchaser's location or wherever delivered to the purchaser (at the purchaser's direction).
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Retailer Uses Own Vehicle: If a retailer uses their own vehicle(s) for making deliveries, delivery is considered to take place at the purchaser's location or wherever delivered at the direction of the purchaser. This applies whether the vehicles are owned or leased by the retailer.
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Situations Where Title Transfers, But Not Possession: Delivery is considered to take place at the retailer's location. For example, a printer may produce business cards for a customer. The cards include all needed information except for the employee name. The printer keeps possession of, but not title to, the cards. At the direction of the customer, the printer will imprint the customer's cards with an employee's name and send the imprinted cards to the customer.
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Retailers with multiple retail locations are to maintain their records so as to clearly show which sales are attributable to each location.
NOTE: Retailers reporting sales for purposes of the local option tax must report their sales by county and municipality where delivery occurs. RETAILERS CANNOT RELY ON MAILING ADDRESSES IN REPORTING THE LOCAL OPTION TAX. A MAILING ADDRESS IS NOT AN ACCURATE INDICATION AS TO WHETHER OR NOT A LOCATION IS WITHIN A PARTICULAR MUNICIPALITY OR COUNTY.
