(a)
Transactions where delivery is made to locations within this
Commonwealth. Where delivery of taxable property or services is made
to locations within this Commonwealth, the transactions shall be subject to
tax. Delivery in this Commonwealth to a nonresident purchaser does not make the
transaction exempt.
(b)
Transactions where delivery is made to locations outside this
Commonwealth. When tangible personal property is sold, leased
or serviced within this Commonwealth and the vendor, lessor or service person
is obligated to deliver it to a point outside of this Commonwealth, or to
deliver it to a carrier or to the mails for transportation to a point outside
this Commonwealth, sales tax does not apply. However, where tangible personal
property under a sale, lease or service is delivered in this Commonwealth to
the buyer or lessee or their agent, other than an interstate carrier, the tax
applies, notwithstanding that the buyer or lessee may subsequently transport
the property out of this Commonwealth.
Examples:
Henrietta Higgins, a speech pathologist, purchased
disposable laboratory supplies from a Commonwealth retailer. The retailer
delivers the supplies (cost and freight) to Providence, Rhode Island. Title to
the supplies passed to Higgins at the Commonwealth point of shipment, but sales
tax does not apply because delivery is made out-of-State.
Ahab Inc., a maker of specialized steel in this
Commonwealth, supplies harpoons to Neptune Inc., a Massachusetts fishing
concern. The harpoons are delivered to Neptune Inc.'s agent (freight on board)
Harrisburg, Pennsylvania for ultimate delivery in Massachusetts. Sales tax
applies to this transaction because delivery is made and title passes in this
Commonwealth.
(c)
When vendor, lessor or service person shall collect tax. A
vendor, lessor or service person engaged in business activity within this
Commonwealth shall collect the tax imposed by the act with respect to the
following transactions:
(1) Where property is
shipped from a point outside this Commonwealth to a point within this
Commonwealth.
(2) Where property is
shipped from a point within this Commonwealth to another point within this
Commonwealth by a route a portion of which is outside this
Commonwealth.
(3) Where property is
purchased and delivered within this Commonwealth even though the purchaser
subsequently transports the property to a location outside this Commonwealth
with the following exceptions:
(i) Property
purchased or having a situs within this Commonwealth solely for the purpose of
being processed, fabricated or manufactured into, attached to or incorporated
into personal property and thereafter transported outside this Commonwealth for
use exclusively outside this Commonwealth shall be deemed to be a resale and
therefore is not subject to tax.
(ii) The sale at retail or use of motor
vehicles, trailers or semitrailers, or bodies attached to the chassis thereof
sold to a nonresident of this Commonwealth to be used outside this Commonwealth
which are registered in a state other than this Commonwealth within 20 days
after delivery to the vendee is not subject to tax.
(d)
Maintenance of
records. A vendor, lessor or serviceperson making sales of tangible
personal property exempt from the tax set forth in this section shall maintain
records of the transactions, together with documents evidencing the delivery of
the tangible personal property to a destination outside this Commonwealth. The
documents include waybills, bills of lading, insurance or registry receipt
issued by the United States Post Office, mail orders, shipping orders or other
data pertinent to the purchase and delivery.
(e)
Property is not exempt by reason
of being used in interstate and foreign commerce. Unless property is
otherwise exempt by reason of this section or this chapter, the sale or use of
tangible personal property in this Commonwealth shall be subject to the tax
notwithstanding the fact that the purchaser is engaged in interstate or foreign
commerce or that the property may be intended for use in interstate or foreign
commerce.
(f)
Interim
storage of property to be used exclusively outside this Commonwealth.
Effective March 4, 1971, the interim storage in this Commonwealth of property
purchased outside this Commonwealth for use outside this Commonwealth and upon
which no work or services are performed is a taxable use. The use tax shall be
based upon the original purchase price of the property. The storage charges are
exempt from tax.
