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
515.0060 "True Object of Transaction" Test. The business activities of a company offering training aids and programs were classified as sales of property or service for sales tax purposes. Charges for the first category, consisting of time surveys, evaluations of existing training programs and the issuance of recommendations, were not subject to sales tax because the charges were for exempt services and no tangible personal property was produced or transferred to the customer. The training aids and programs under the second category, which consisted of films, slides, tapes, and reproduced printed manuscripts, were taxable because the end product desired by the customer was tangible personal property. 1/21/70.