(a) "Delivery
Charges" exist only when the total charges to the ultimate customer
or consumer include, as separately charged to the ultimate customer,
charges for delivery to the ultimate consumer, whether the place of
delivery is within or without the City, and when the taxpayer's books
and records show the separate delivery charges.
(1) Identification
to the customer or consumer that the listed price has "delivery
included" or other similar expression is insufficient to show the
delivery as a separate charge. Only the separately stated
charge for the delivery shall be deemed a "delivery charge".
(2) Freight
in. Charges for delivery from place of production or the
manufacturer to the vendor either directly or through a chain of
wholesalers or jobbers or other middlemen are deemed "freight -in"
and are not considered delivery.
(b) "Installation",
as used in this definition, relates only to tangible personal property.
Installation to real property is deemed construction contracting in
this Chapter. Examples of installation relating to tangible
personal property are: installing a radio in an automobile; applying
sun screens on the windows of a boat; installing cabinets, carpeting,
or "built-in appliances" to a camper or motorized recreational vehicle.
(c) Repair of
tangible personal property is not included in this definition.
See Regulation ___-465.1.
(d) "Direct
Customer Services" means services other than repair rendered directly
to the customer. Services or labor provided by any person prior
to the transfer of tangible personal property to the customer or consumer
are not included in this definition. In the following examples,
the requirements of subsection (e) below are referred to by the words
"identify" or "identification."
(1) A retailer
sells a customer a $100 "plug-in" appliance, with a $25 delivery
and installation charge. If the retailer identifies the $25
delivery and installation charge, it is a charge for direct customer
services.
(2) A caterer
charges his customer $1,000 for the food and drink served, $300
for setup and site cleanup, and $500 for bartender and waiters.
If all charges are properly identified, only the $300 for set up
and cleanup is a charge for direct customer services, and the $1,500
for food and service is restauranting gross income.
(3) Persons
engaged in engraving on wood, metal, stone, etc. or persons
engaged in retouching photographs or paintings may consider such
charges for labor as direct customer services.
(4) All charges
by a photographer resulting in the sale of a photograph (sitting
charges, developing, making enlargements, retouching, etc.) for
services that occur prior to transfer of tangible personal property
are not direct customer
services.
(5) An equipment
rental company charging $25 for delivery may consider such delivery
charge as a charge for direct customer service only if such charge
is properly identified.
(6) Even if
identified, charges for labor incurred in the production of any
manufactured article or of a custom-made article (jewelry, artwork,
tailoring, draperies, etc.) are not included in this definition,
as such labor occurs prior to the transfer of property.
(e) Recordkeeping
requirements.
(1) Any person
who engages in transactions involving these services must:
(A) Separately
bill, invoice, or charge the customer for such services in a manner
by which the customer or consumer may readily identify the specific
dollar amount of the service charge; and
(B) Maintain
business books and records in a manner in which the separate charge
for such services can be clearly identified, to the satisfaction
of the Tax Collector.
(2) Rendering
a statement to a customer for a transaction involving such services
and the transfer of tangible personal property which only indicates
the total amount of the charges with words such as "services included"
or "charge includes labor and parts" or a similar expression does
not satisfy the requirements of this subsection.
