Section R15-5-2210. Collection of Tax by the Vendor

A.      The vendor may pass on the economic burden of the transac- tion privilege tax, either as an unspecified portion of the over- all selling price or as a separate and distinct item of charge.

1.        If a vendor elects to pass on the economic burden of the tax as a separate and distinct item of charge, the vendor’s tax base shall not include any collected state, county, city, or town taxes.

2.        If the vendor does not pass on the tax as a separate and distinct item of charge, the vendor may factor out the tax. See R15-5-2210.01.

3.        The amount of tax on a transaction shall be the same whether the tax is stated as a separate and distinct item of charge or the tax is calculated using the factoring method.

4.        Calculation of the amount of the tax using the separate and distinct item of charge method shall be as follows:

Historical Note

New Section adopted effective October 14, 1993 (Supp. 93-4).