Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
120.0000 AUTOMATIC DATA PROCESSING SERVICES AND EQUIPMENT—Regulation 1502
(b) PROCESSING CUSTOMER-FURNISHED INFORMATION
120.1175 Data Processing. Charges for the same data processing activities, e.g., data entry and verification, etc., may be taxable or nontaxable depending on the means of transferring the finished product to the customer. If the customer receives the data on storage media such as tape or disk or other media constituting tangible personal property, the charges are subject to tax. If the data is transferred electronically (modem to modem) to the customer's computer and no tangible personal property is transferred, there has been no sale and the tax does not apply. 4/29/94.