Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(e) MISCELLANEOUS ACTIVITIES
515.1181 License to Manufacture and Sell. A domestic corporation and a foreign corporation each have developed proprietary products. Both corporations desire to have an alternate source supplier for their products. The two corporations entered into an agreement whereby they license each other to manufacture and sell each other's products in exchange for seven percent and four percent royalties. In connection with this agreement, technical information in human readable form is transmitted electronically between the parties.
There is no transfer of tangible personal property in this transaction and neither sales nor use tax applies. 7/11/85.