Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0005.900 Design of Case. A firm contracted to design and engineer a case to hold collectibles. It charged $500 for "concept configuration," $975 for "component engineering," and $25 for blueprints. Concept configuration involved evaluating the problem, gathering data, and solving problems imposed by constraints such as size, appearance, cost, and manufacturability. "Concept engineering" involves selecting materials, discussions with toolmakers, calculations, and the production of blueprints to allow transmittal of design.
The contract is a service contract. Tax applies only to the charge for duplicate blueprints. 6/21/91.