Sales Price


The sales price is the total of all charges that are part of the sale. If the item or service is taxable, these items are also taxable. Examples include:

  • retail price of a good or service
  • fabrication labor
  • delivery charges
  • installation labor
  • taxes and fees that are the responsibility of the seller but are passed onto the customer (credit card processing fees, environmental fees)
  • tips added to the bill by the seller
  • service charges
  • employee fair wage charges or employee wellness charges
  • surcharges (food, fuel, etc.)
  • any other charges that are a condition of the sale

The sales price does not include:

  • credit allowed for trade-in
  • term discounts
  • cash discounts
  • taxes and fees legally imposed directly on the customer
  • interest charges
  • finance charges from an extension of credit by the lender
  • coupons unless reimbursed by a third party