Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0068 Providing Instructional Material. A firm is in the business of assisting its clients in developing instructional material to be used in the client's training program. It consults with the client and subsequently develops a participant's guide and an instructor's guide plus transparencies which have only text. One copy of each is delivered to the client. It also develops a script of dialogue to be used in a videotape to be produced by the client.
The transfer of a script for a videotape, participant's and leader's guides, and the transparencies consisting of only text, is incidental to the performance of a service. Accordingly, tax does not apply to the charge to the customer. However, the firm is the consumer of the materials used to produce the property and tax applies to the purchase price of such material. 12/8/89.