Are shipping and handling charges taxable?

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In a sale at retail, shipping and handling charges are taxable when:

• the transportation and delivery charges are not separately identified to the purchaser on the contract or invoice; or
• the transportation and delivery charges are separately identified to the purchaser on the contract or invoice, but the seller does not offer the purchaser the option to receive the property in any manner except by the payment of transportation and delivery charges added to the selling price of the item (e.g., no pick-up option is offered to the purchaser, or the purchaser does not qualify for free transportation or delivery).

See 86 Ill. Admin. Code Section 130.415 for more information.

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