Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(c) ORIGINAL MANUSCRIPTS, PLANS, ETC.
515.0689 Research and Development-Photocomposition. A firm has a contract which provides for the processing of magnetic tape copy furnished by its customer and for the photocomposition production materials used in printing. During the early stages of the contract, the firm is involved in research and development of the photocomposition method of reproduction. No use is made of the materials produced during this stage. Later the printed matter is produced using the photocomposition method.
The contract calls for the production of photocomposition of pages to be used in the printing which is billed to the customer at the firm's cost. Tax applies to the full contract price without deduction for the developmental stages during the early part of the contract. 3/7/74.