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
515.0012 Market Research Reports. Market research reports sold to interested parties are sales of tangible personal property subject to tax and not nontaxable services under Regulation 1501. In order to qualify under Regulation 1501, the purchasers would have to enter into a contract with the market researcher before the research was conducted rather than merely purchase subscriptions, whether before or after the research is conducted. Even if the purchasers contracted in advance to purchase all issues of the report, this would be regarded as on-going subscriptions and not as contracts to commission specific research. Altering the subscription price based on the number of subscriptions sold or based on market share does not make sales of the report a service. 8/14/89.