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
120.2783 Processing Customer Information. Customers provide their diaries or logs for processing by the taxpayer for a fee. The taxpayer returns the results in hard copy to each customer in a cost or expense summarization type format.
The taxpayer is providing a service and the transfer of the hard copy of the processed information is only incidental to the provision of the service. Thus, the charges for these services are excluded from the measure of tax. The taxpayer is the consumer of all tangible personal property which is used in providing these nontaxable services. 12/9/93.