Generally, tangible personal property sold or bartered for a consideration is subject to tax. In addition, receipts from retail sales of communication services, magazines, other periodicals sold over the counter, cigarettes and tobacco products, admission tickets for recreational activities, rental of hotel and motel accommodations and leasing of tangible personal property are subject to tax. While charges for labor generally are exempt from sales and use taxes, labor charges separately stated or lump sum billed in connection with the sale of a fabricated item are subject to sales tax.

Freight, delivery and other transportation charges associated with a sale become part of the selling price of the item being sold if the seller bills the purchaser for the freight. These charges are only taxable if the merchandise being sold is taxable. Lump sum freight charges related to the sale of tangible personal property should be prorated when the charge applies to both taxable and nontaxable personal property.