Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(b) RENTAL RECEIPTS—ITEMS INCLUDED AND EXCLUDED
330.3428 Lease of Compact Disks. A person who obtains compact discs (CDs) and places information on them for purposes of leasing is not leasing them in substantially the same form as acquired (blank CDs). Therefore, the lease of such CDs is a taxable continuing sale and the lessor must collect use tax from the customer measured by the rental payments and pay it to the state.
In addition, for a fee, some customers may call a 1–900 telephone number to receive information from the lessor's computer system. The information is provided to the customer verbally or electronically by fax.
The access by telephone for voice or fax transmission is not regarded as the sale of tangible personal property and, therefore, this charge is not taxable. 11/21/94.