Direct mail delivery charges

From the 2024 DOR Tax Exemption Study

82.08.807; 82.12.807 - Direct mail delivery charges Description Delivery charges made for direct mail are exempt from sales and use taxes if the charges are stated separately on the bill given to the purchaser. Direct mail refers to printed material delivered without charge to a mass group, or a mailing list provided by the purchaser. Purpose To exempt from delivery charges (postage) for direct mail from taxation. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.390 $0.400 $0.420 $0.430 Local Taxes $0.170 $0.180 $0.190 $0.190 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.370 $0.420 $0.430 Local Taxes $0.000 $0.166 $0.190 $0.190 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sales tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Department of Revenue, Excise tax data - Economic and