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Last Updated: 7/16/2018

Taxable Sales

Sales and rentals of tangible personal property are taxable unless an exemption applies. Examples include:

  • Batteries
  • Candy and gum
  • Dietary supplements
  • Equipment sales or rentals
  • Jewelry and watches
  • Office supplies
  • Pet food

For more information, see the Sales and Use Tax Instruction Booklet.

Several services are also taxable. For more information, see a complete list of taxable services.

Business inventory

Sales of taxable business inventory do not qualify for the isolated or occasional sale exemption. Business inventory is sold in the regular course of business.

To sell taxable inventory exempt from sales tax, you must obtain a completed Form ST3, Certificate of Exemption, from the buyer.

For more information, see Fact Sheet 132, Isolated and Occasional Sales.


The clothing exemption applies to clothing suitable for general use. The clothing exemption does not apply to the following, which are taxable: fur clothing, clothing accessories or equipment, sports or recreational equipment, or protective equipment.

Examples of taxable clothing accessories or equipment:

  • Backpacks

  • Handbags and purses
  • Billfolds and wallets

  • Hip waders
  • Cell phone accessories

  • Pet clothing
  • Crib blankets, sheets, mattress pads

  • Sunglasses (nonprescription)
  • Hair clips and accessories

  • Umbrellas

Examples of taxable sport or recreational equipment:

  • Ballet and tap shoes
  • Protective masks or shields (mouth or shin guards)
  • Cleated or spiked athletic shoes
  • Skates (roller, ice)
  • Hand, elbow, knee guards
  • Ski boots
  • Helmets (all types)
  • Wet suits and fins
  • Life preservers and vests

Examples of taxable protective equipment:

  • Chaps
  • Helmets (all types)
  • Ear and hearing protectors
  • Reflective or safety vests, aprons, gloves, etc.
  • Face masks for medical use
  • Tool belts
  • Hard hats and liners
  • Welding gloves and masks
For more information, see Fact Sheet 105, Clothing.

Ticket sales

The privilege of admission to a place of amusement, recreation area, or athletic event is taxable. For a list of taxable admissions, see Fact Sheet 123, Admissions and Amusement Devices.

Ticket sellers who facilitate the sale

Ticket sellers, who facilitate the sale, sell admission tickets to an event or place of amusement on behalf of an event organizer. They are given tickets at no charge by the event organizer and generally return any unsold tickets to the organizer. Ticket seller facilitators include:

  • convenience stores
  • grocery stores
  • remote sellers
  • other retailers

Ticket seller facilitators do not purchase tickets for resale. They charge the customer for the tickets and may add additional service or delivery charges. They are responsible for collecting and remitting sales tax on the total sales price sold to the customer, including any additional charges.

For more information, see Ticket Sales and Admissions.

How do I determine the sales price?

For sales tax purposes, sales price is the amount subject to sales tax. Sales price includes the following charges:

  • Retail price of the product or service
  • Fabrication labor
  • Delivery or handling charges
  • Installation charges
  • Layaway fees
  • Taxes that are the obligation of the seller
  • Service charges (trip charge, fuel surcharge, processing charges, etc.)
  • All items required as a condition of the sale

The entire amount billed to the customer is taxable, even if the charges are separately stated.

What is not included in the sales price?

Sales price does not include the following charges:

  • Credit allowed for tangible personal property taken in trade (trade-in allowance)
  • Discounts or coupons (see the Discounts and Coupons section)
  • Interest
  • Finance charges
  • Taxes legally imposed on the consumer, if separately stated on the invoice

Sales tax separately stated

You should separately state sales tax on the customer’s invoice. If you include sales tax in the price, you must note that the item has tax included on the receipt or post a sign stating tax is included.


When a customer returns a taxable item, refund the purchase price and sales tax paid on refunded items.

Local sales tax

Some cities and counties have local sales and use taxes. If you make sales into or are located in an area with a local tax, you may owe local sales or use tax. For more information, see Fact Sheet 164, Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The rate calculator does not include special local taxes.

For more information, see:

< Retailers and Wholesalers  Nontaxable Sales >
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