Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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L

330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660

Annotation 330.2135

(a) IN GENERAL

330.2135 Data Base. A firm has a data base of title documents consisting of computerized indices, microfilm copies of recorded documents, and paper or microfilm copies of maps or other miscellaneous documents.

The firm plans to enter into contracts with customers under which (1) the customer would have access to the data base at a single physical location for five years, (2) the customer would make monthly payments based on usage, and (3) the customer would obtain title to copies of the data base at the end of five years by payment of an amount in excess of $100.

The charge for access to the data base is considered a lease. Assuming the data base is not in the same form as acquired, (e.g., paper or microfilm copies are made by the firm), the lease is subject to tax measured by the monthly payments.

If the customer exercises the option to purchase, the option price is taxable. 12/5/95.