Parking and Transportation Services

When parking and transportation services are sold together for one fee, the entire sale is taxable even though transportation by itself is a nontaxable service. When sold together, the transportation service is taxable because it is necessary to complete the sale of the parking service.

For the transportation service to remain nontaxable, the vendor must give customers the option of not taking the transportation service and state the charges separately on the invoice.

Stating that the charge is for 50% parking and 50% transportation on the invoice or a sign is not sufficient to relieve vendors their responsibility to charge and remit tax on the total price.

For more information, see Revenue Notice 00-04, Sales Price – Mixed Transactions.