Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(c) X-RAY FILMS AND RADIOGRAPHS.
420.0686 Inspection Services. A firm engaged in the business of providing the following services is a consumer of x-ray film.
(1) Testing and inspecting the customer's products.
(2) X-raying the products. (3) Examining the x-ray film for possible defects in the product.
(4) Preparing a report to its customer based on the results of the tests and the examination of the x-rays.
The primary purpose for purchasing the x-ray film is for use in the inspection service. Thus, the firm may not purchase the film for resale. Whether the subsequent sale of the x-ray film to the customer results in a taxable sale depends on further facts. If the customer purchases the x-ray film to make its own inspection, the sale is a retail sale. If the customer purchases the x-ray film merely to sell to its customer with no intervening use, the sale is nontaxable. 6/24/91.