Ezel / Tax Rulings / CA

Were separately stated United Parcel charges excluded when a retailer shipped orders from its business directly to customers?

Short answer Yes, if the property was not sold for a delivered price. United Parcel was transportation by facilities other than the retailer's.
State
CA
Ruling
Annotation 557.0660
Tax type
Sales and Use Tax
Issued
1964-12-07
Issued by
California State Board of Equalization
Requested by
Retailer shipping customer orders by United Parcel
Topics
third party carriers separate statement delivered price direct shipment delivery charges
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1964. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1964
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This December 7, 1964 letter addressed a retailer sending customer orders through United Parcel. California classified United Parcel as transportation by facilities other than the retailer and conditioned exclusion on separate statement, direct shipment from the retailer's business to the purchaser, and the property not being sold for a delivered price. The short source notes that different facts could require further analysis. CDTFA says statutory law controls if it conflicts with an annotation. Contract price, separate statement, shipment origin and destination, carrier relationship, and current law can change the result.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A retailer used United Parcel to send orders from its place of business to customers.

California treated United Parcel as transportation by facilities other than the retailer.

If the property was not sold for a delivered price, separately stated direct delivery charges were excluded from taxable gross receipts.

Common questions

Was United Parcel treated as the retailer's own facility?

No.

Did the charge need to be separately stated?

Yes.

Could a delivered-price sale change the answer?

Yes.

Citations and references

  • Historical Sales Tax Ruling 58 — delivery-charge rules enclosed with the letter

Source

Original ruling text

557.0660

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
December 7, 1964
Gentlemen:
This is in reply to your letter of November 17, 1964, in which you inquire whether United Parcel delivery charges on orders you send to customers should be included in the measure of taxable gross receipts. Certain delivery charges are considered taxable while certain other delivery charges are excluded from the measure of tax. We are enclosing ruling 58, which discusses the application of the law to delivery charges. Transportation by United Parcel is considered to be transportation by other than facilities of the retailer. Therefore, if you do not sell the property for a delivered price, the tax would not apply to separately stated charges for transportation from your place of business to the purchaser. If we have not address ourselves to the situation which confronts you or have any further questions, please do not hesitate to write to us again. Very truly yours E. H. Stetson Tax Counsel By Philip R. Dougherty PRD:mm Enc. cc:

San Jose – District Administrator

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