Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 330.3011


330.3011 Transfer of Names and Addresses by Magnetic Tape. A company makes two copies of an owner's mailing list tape and then returns the original tape to the owner.

The use of the original tape to make copies is an exercise of dominion and control over the tape by the company. Since the company is not processing information for the list owner and no output resulting from the processing is transferred to the list owner in human readable form, or in any other form, Regulation 1502 is not relevant to this situation. The transfer of names and addresses by means of magnetic tape constitutes a lease of the tape. The transfer of a mailing list tape is not considered to involve only a transfer of intangible information.

The "one time only" restriction is contained only in the contract between the company and its customer, not between the company and the mailing list owner. The fact that the company agrees with the list owner to restrict the company's customer to a "one time only" use does not restrict the company to a one time use. The fact that the company must get the list owner's approval of each mailing is not a numerical restriction but goes to the list owner not wanting to undercut his own purposes by allowing mailings to be made by potential competitors. The "one time only" restriction is not applicable to this situation. The lease is subject to tax. 10/19/76.