Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0060

(a) In General

120.0060 Computer Work. If the product of a computer operation consists simply of punchcards or other tangible property prepared from data supplied by the customer, the operation constitutes a processing of personal property and is taxable as a sale under section 6006(b). However, if the operation involves the development of information or evaluation of data so that the operator of the computers is actually creating ideas, information or concepts, then he would be performing a service and would be considered the consumer rather than the retailer of cards or other tangible property delivered to customers. 9/28/66.