Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(e) MISCELLANEOUS ACTIVITIES
515.1314 Sportag, Tag-Along, and Identag System. "Sportag" is a lightweight durable plastic tag worn on a person's shoelace and contains a phone number and identification number. By making a collect call to Sportag, immediate identification and a list of allergies and special medical conditions will be given to the rescuing party. The initial fee is $10.00, renewable annually for $7.00. Tag-Along is an identification tag for children and Identag is an identification system for items such as car keys, briefcases, etc. The identification system for Tag-Along and Identag work along the same lines as Sportag. The price for one tag is 49 cents and one tag is included with each sale.
Under this scenario, the Sportag, Tag-Along, and Identag systems are services with incidental transfer of tangible personal property. Thus, the taxpayer is the consumer of the tags. As the consumer of the tags, sales or use tax applies to the purchase price of the tags to the taxpayer. 10/19/84.