Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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495.0000 SALE

Annotation 495.0195


495.0195 Contribution for Video Tapes. A person distributes educational video tapes to the public and to professors, students or employees for $35.00 plus shipping and handling. The person describes the transfer of the tapes as a "gift" and the payment of the $35.00 as a "contribution."

For sales tax purposes, the transactions are regarded as sales of tangible personal property. Sales tax applies to the charge made for the tapes exclusive of actual shipping charges, but only to the extent of actual postage or shipping fees. The handling charges are taxable. 6/9/95.