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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 Town, 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 8A-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 one hundred dollar ($100.00) “plug-in” appliance, with a twenty-five ($25.00) delivery and installation charge. If the retailer identifies the twenty-five dollar ($25.00) delivery and installation charge, it is a charge for direct customer services.

2. A caterer charges his customer one thousand dollars ($1,000) for the food and drink served, three hundred dollars ($300.00) for setup and site cleanup, and five hundred dollars ($500.00) for bartender and waiters. If all charges are properly identified, only the three hundred dollars ($300.00) for set up and cleanup is a charge for direct customer services, and the one thousand five hundred ($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 twenty-five dollars ($25.00) 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 similar a expression does not satisfy the requirements of this subsection. ((O)08-08, 04/16/2008)