Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501

Annotation 515.0755

(c) ORIGINAL MANUSCRIPTS, PLANS, ETC.

515.0755 Technology Transfer. A firm enters into a contract to purchase certain tangible personal property together with the right to reproduce the property and incorporate the reproduction into integrated circuits which it will sell. The contract also provides for 80 hours of consultation and a requirement that each product produced by the firm contain a copyright notice. The contract calls for payment of a lump sum plus royalties based on the number of units produced.

The contract is for a "technology transfer." The measure of tax is limited to the value of the tangible personal property separate from the license to manufacture and sell. The sales price of the tangible personal property is the cost of material, fabrication labor and suitable mark up. 12/15/92.