Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013

Sales and Use Tax Annotations

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Annotation 515.0013.965


515.0013.965 Scholarship Report. A company provides a scholarship matching service designed to assist college bound high school students, college students, and parents of both groups in finding private-sector scholarship funding for higher education. Using a database, the service provides: (1) a cover letter describing the different types of awards; (2) suggestions on applying for awards; (3) a suggested form letter to be used when requesting information from scholarship sources; (4) a search summary; and (5) a detailed description of each of the sources available in the student's field(s) of interest.

It is assumed that each search summary and the accompanying descriptions will not be a "canned" or standardized report which is sent to other students and that the contract price with each student covers the full cost of compiling the information which goes into the search summary and accompanying description. Based on these assumptions, the transactions for the search summary and descriptions are nontaxable services. The form cover letter and suggestion documents are also considered to be tangible personal property provided incidental to the service, and the charge is not taxable. 7/2/92.