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 120.0108.225

(a) In General

120.0108.225 Extracting Information from Customer's Documents. A taxpayer contracts to extract information from documents provided by its customer and to perform data entry. Then, the taxpayer returns this information back to the customer in electronic form via electronic transmission to the customer's computer.

Data entry is regarded as taxable fabrication under Regulation 1502(d)(2) if such data entry is transferred to the customer in tangible form such as on storage media or if the taxpayer performs the data entry on the customer's computer. However, if the information is transferred by remote telecommunication and the customer does not obtain any tangible personal property such as tapes, disks, or other storage media, the transfer does not constitute a sale of tangible personal property. (Regulation 1502(f)(1)(D).) 8/31/95.