Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
(a) IN GENERAL—DEFINITION
495.0074 Cancellation Charges. A taxpayer, upon receipt of a purchase order, purchases materials and components necessary for the manufacture of the product. Prior to delivery of any property pursuant to the purchase order, the customer cancels the order. If neither possession nor title to the purchased materials and components passes to the customer, tax does not apply to charges made for cancellation. 11/15/93.