Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(e) MISCELLANEOUS ACTIVITIES
515.1417 Vehicle Tracking Services. A corporation provides vehicle tracking services to its subscribers using a system of satellites, terrestrial radio towers and receiving and transmitting units. All of the equipment is owned by the corporation. The receiving and transmitting units are installed in the subscriber's vehicles and business office. Information received by subscriber is displayed on a computer terminal that includes both mapping and text format. The location of the subscriber's vehicles are shown on a detailed map of the area. The accompanying text includes information regarding the vehicle speed, heading, location and distance from the subscriber's home base. The corporation retains title to the equipment provided to its subscriber under the service contract and is responsible for all maintenance and repairs with respect to such equipment. Subscribers pay a flat monthly fee for use of the vehicle tracking system and the two-way radio communications systems. The equipment furnished subscribers is furnished without any specific lease agreement and is returned to the corporation at the end of the contract term.
Under the above conditions, the providing of the equipment to the subscriber is incidental to its tracking and communications services; and therefore, the corporation is the consumer of property furnished to its subscribers. 12/27/94.