Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501

Annotation 515.1178

(e) MISCELLANEOUS ACTIVITIES

515.1178 Letter from Santa. A taxpayer anticipates offering a "letter from Santa" which will be a personalized letter sent to individual children. The taxpayer will write a form letter and use word processing equipment or a typewriter to set up the basic form. When the purchaser orders a letter, he or she will provide the taxpayer with facts which are unique to each child. The taxpayer will insert the new information, such as the child's name, into the appropriate spaces in the letter. Through this process the taxpayer will modify the form letter and create each child's personalized letter from Santa.

Under Regulation 1502.1(a), tax applies to charges for producing multiple copies of letters using word processing equipment. Multiple copies include form letters produced with a slight variation which personalizes essentially the same letter. Thus, sales tax would apply to the taxpayer's entire gross receipts from the sale of each letter. 12/7/95.