Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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P

420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528

Annotation 420.0686

(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.