Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501

Annotation 515.0011.320

(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE

515.0011.320 Hand-Held Receivers. A taxpayer sells and rents a hand-held data processing device which receives radio transmissions of stock market, sports information, and other data. Customers may buy or lease the devices from the taxpayer. A monthly charge is made for access to the data base separate from any rentals paid for the lease of the device. Tax applies to the sale of the devices. Tax applies to the lease receipts unless the devices are purchased tax-paid by the taxpayer and leased in the form in which they were acquired. Tax does not apply to the service of supplying the data transmissions. 9/19/83.

(Note: The taxpayer has structured the transactions as a sale or lease of the device separate from the providing of the service and MCI Airsignal does not apply.)