Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0002.690 Business Strategy and Marketing Plan. A taxpayer is hired to write "the business and marketing plan" for a client. The taxpayer interviews the client, has ongoing discussions with the client concerning the work, observes and listens to internal discussions of the client, and conducts field research. There is no transfer of possession or title to tangible personal property to the client except for one written copy of the plan and one written report consisting of the compilation and summary of the research.
The true object of this contract is for the client to obtain the customized information and advice which taxpayer develops for the client, not to obtain tangible personal property in the form of the printed reports. The client receives one copy of each of the two reports and no additional copies of the reports are transferred to the client. As such, the taxpayer's charges for this service are not subject to tax. 11/18/96.