Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(c) X-RAY FILMS AND RADIOGRAPHS.
420.0697 Radioscopy and Shooting Pictures of Food Products. A contract calls for the inspection of food products possibly contaminated by foreign material. The process involves exposing the food products to radioscopy and "shooting pictures" of items that appear contaminated. The contract calls for a report to be issued. If no contaminated food is found, only a report is issued. If contaminated food is found, the film becomes part of the report. Invoicing reflects technical labor, equipment rental, travel expenses, and an unspecified materials fee.
In this case the true object of the contract is for the performance of a contaminated food report which is a service. The film is considered to be merely incidental to providing nontaxable services and there being no additional charge for providing the film, charges for the performance of such services would not be taxable. 1/11/94.