Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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590.0000 VENDING MACHINE OPERATORS—Regulation 1574

Annotation 590.0048

590.0048 Fixed Price Contract. A contract between a vending machine operator and its customer provides that the operator must establish a price to be charged with the consent of its customer and that any increase in price is subject to mutual agreement of the parties. Despite the fact that the contract does not specifically state the mutually agreed upon prices, it is a fixed price contract.

The contract also provides that the operator ceases to be obligated to the fixed price whenever the price of any item dispensed is increased after a specific date. Accordingly, upon the occurrence of this event, the customer is no longer obligated under a fixed price contract and the increased tax rate is applicable. 3/30/84.