Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0001.900 Automated Payment Processing Service. A firm provides automated payment processing to its customers. That is, the firm collects payments on behalf of its customers for bank processing, transmits the amounts collected to the customer through electronic or telephonic transmission, and provides its customers with a periodic report reconciling the total deposits with amounts credited to specific patient accounts.
The true object of this transaction is to provide account collection and reconciliation services. Therefore, tax does not apply to the firm's charges for this service. However, the firm is the consumer of the materials it uses in preparing its periodic reports and tax applies to the purchase of these materials where the firm purchases or consumes these materials inside this state. 2/26/97.