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 515.0015.500

(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE

515.0015.500 Seminars. A taxpayer presents educational material to the general public. The price includes course material and lunch. If the presentation includes significant classroom instruction, only the charge for the lunch is subject to tax. While the charge to the participants other than the lunch is not taxable, the sale of the course materials to the taxpayer is taxable.

If the seminar consists only of a short speech (i.e., no significant classroom instruction) at lunch and the participants are required to purchase the lunch in order to hear the speech and obtain handout materials, the transaction would be treated as a sale of lunch and the handout materials and the entire charge is subject to tax.

The taxpayer also presents seminars dealing with a software package which it sells. The charge for the seminar is billed separately from the software. If the customer is not required as a condition of buying the software to purchase the seminar, the charge for the seminar is not taxable. 4/29/92.