Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
540.0000 TANGIBLE AND INTANGIBLE PROPERTY
540.0240 Designs, Drawings, Customer Lists, Patents and Goodwill. Designs, drawings, customer lists, patents and goodwill of an out-of-state corporation were purchased by an in-state purchaser. Since the designs and drawings are tangible personal property, they are subject to use tax measured by the portion of the purchase price reasonably attributable thereto. The customer lists, patents, and goodwill are intangibles. Accordingly, the portion of the purchase price reasonably attributable to these items is not subject to tax. The part of the purchase price attributable to the patent would also be subject to use tax if the patent was necessary to operate machinery or equipment that was also purchased. 8/10/66; 6/7/84. (Am. 2001–3).