Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(e) MISCELLANEOUS ACTIVITIES
515.0775 Biographical Information Resumés. A taxpayer operates an international "matchmaking" service. The taxpayer provides information on single Russian, Ukrainian and other Commonwealth of Independent State (CIS) women, who desire to immigrate to the U.S.A. and marry single American men who also wish to marry. The taxpayer does not charge the female clients in the CIS to sign up with the taxpayer's service. They complete an application and provide at least one photograph of themselves. The taxpayer transfers (after translation) their biographical information onto a standard resumé form.
The taxpayer prepares single information sets which include one resumé (with picture) and corresponding addresses of the single women. Other portfolios will contain 10 or 20 resumés rather than one resumé. The selling price increases with the number of resumés in the portfolios.
Under this scenario, if the taxpayer's operations consist merely of the selling of resumés and pictures with no significant match making services, sales tax applies to the entire gross receipts from the sale of such material. However, if the taxpayer is selling a service where it provides its customers with input, advice, or assistance in the selection of potential mates from the CIS as opposed to simply selling pictures and resumés of CIS women who are selected solely by customers after they browse through resume books, the taxpayer is providing a nontaxable service. The taxpayer is regarded as the consumer of the tangible personal property delivered to the customer and sales or use tax applies to the purchase price of the property to the taxpayer. 6/15/95.