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
515.0026 Service or Sale. A taxpayer creates exhibits for the use of attorneys at trials. The activity may involve the taxpayer's taking video tapes, computer animation, charts, illustrations, etc. and recording them on a laser disk for access and display during the trial. Inasmuch as the true object of the contract is the acquisition of the disk rather than the services used to create the disk, the transaction is a sale of tangible personal property. The gross receipts (the entire amount paid for the disk) is subject to tax, with no deduction for any expenses such as mileage, transportation, meals, copies, etc., as provided in section 6012. 8/22/94.