Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
280.0000 GIFTS, MARKETING AIDS, PREMIUMS AND PRIZES— Regulation 1670
280.0340 Contest. Winner of a contest receives a diamond valued at $50. He was required to have the diamond set in a ring sold by the donor at a total price of $129.50 less allowance of $50 for the diamond, leaving a balance of $79.50. The donor has given away the diamond for advertising purposes and is the consumer thereof. Accordingly the measure of the tax is the $79.50 plus the cost to the donor of the diamond. If the donor had purchased the diamond under a resale certificate, he would be required to include its cost in his measure of tax. 5/11/54.