Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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A

120.0000 AUTOMATIC DATA PROCESSING SERVICES AND EQUIPMENT—Regulation 1502

Annotation 120.0040

(a) IN GENERAL

120.0040 Computer Forms Printer. Where an automatic data processing service bureau reproduces a customer's output on a Computer Forms Printer, the reproduction charges are subject to sales tax because the data are not transferred by computer program and no new information is developed. If the data is transferred by computer program and new information is developed, the processing is not taxable because the object of the contract is service. The nontaxability of the basic processing of the data will not be affected by the use of the Computer Forms Printer to reproduce extra copies. If the computer firm cannot identify the separately taxable portion of the charges for the processing contract, all charges are taxable. 2/5/70.