Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(c) ORIGINAL MANUSCRIPTS, PLANS, ETC.
515.0540 Molds. The full amount of a sale must be included in the taxable gross receipts where the contract of sale involved the sale of boat molds capable of producing a sailboat together with an assignment of the vendor's rights in the design which are subject to royalty payments to the designer. The value of the design rights is presumed to be equivalent to the royalty payments and hence there is no sale of intangible property involved. Also, the various functions performed in developing the boat molds, including design, are costs or services which are part of the sale and hence are taxable. 6/4/64.