Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

495.0000 SALE

Annotation 495.0214

(a) IN GENERAL—DEFINITION

495.0214 Donating Books. A taxpayer is in the business of making and selling personalized computer books. As part of the operations, she gives personalized books to children in hospitals. Donations are received from private parties to help subsidize this operation.

Since the taxpayer has no contractual obligation to give the books and no consideration is received when the taxpayer does so, the books given to the children are not being sold. Rather, the taxpayer is the consumer of the materials incorporated into the books and tax is due on the purchase price of those materials by the taxpayer. 2/11/88.