Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0462 Royalties. A contractor purchases equipment to manufacture and erect highway barriers. The contractor also contracts for the seller to provide assistance in using the equipment at a fixed rate per linear foot of barrier. The charge for assistance is not a royalty and is not a part of the sale of the equipment. The
charge was for the providing of skilled workmen and is not related to the right of the buyer to use the equipment. Accordingly, the charges for the "per linear foot of barrier" are not subject to tax. 10/29/75.