Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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495.0000 SALE

Annotation 495.0033


495.0033 Billing for Magnetic Tapes Used as Storage Media in Time Sharing. There is no sale or purchase of magnetic tapes used as storage or memory media in a company's time-sharing operation. This is true even though the customer manipulates the tapes by telephone access to the time-sharing company's computers and even though the cost of these tapes are billed to the customer. Title to these tapes is never transferred to the customer and there is no transfer or possession when the tapes remain at the location of the time-sharing company's computers and are manipulated by customers only through their remote access to the computers. The time-sharing company is the consumer of the magnetic tapes and its purchases of the tapes are subject to tax. 7/24/85.