Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0757 Canceled Contract. A taxpayer designs and manufactures property to the special order of its customers. If a customer cancels the contract prior to completion, a fee is charged to compensate the taxpayer for the work performed. If no tangible personal property is transferred and there is no fabrication of customer furnished property, there is no sale, and the fee is not part of taxable gross receipts. 8/16/90.