Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 515.0188


515.0188 On-Site Photostat Copies. A taxpayer does on-site photo copy work for law firms and other companies as a subcontractor. When billing a client, separate charges are made for machine transportation and set-up fee, an hourly rate for time spent on the job, and twenty cents per copy.

In this case, the sales tax applies to the entire amount charged, including the machine transportation and set-up fees, the hourly rate, and the per copy charge since the contract is to provide copies of documents which are sales of tangible personal property. In those cases where the taxpayer performs the photocopying work as a subcontractor, the sale may qualify as a sale for resale provided the other company intends to resell the copies to another purchaser. However, such resales should be supported by a complete resale certificate, issued timely, and taken in good faith.

Additionally, items becoming a component part of the property transferred to the client, i.e. copy paper, binder clips, toner, etc., may be purchased ex-tax for resale. Items not transferred to the client are considered to be consumed and may not be purchased without tax. 11/13/92.