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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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A


120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0108.390

(a) In General

120.0108.390 Furnishing Database Information. A taxpayer compiles its own, nonexhaustive database containing information on the shipment of prescription drugs. Taxpayer's clients request specialized reports regarding the sale of a particular pharmaceutical in relationship to a particular category of pharmaceuticals. The taxpayer compiles these reports by developing information through statistical analysis of the information in its database. That is, the taxpayer does not merely provide its clients with portions of its database to fulfill their requests, but rather creates customized information through a significant and substantial analysis and selection process.

Under these facts, the taxpayer is regarded as providing tangible personal property incidental to the providing of a service when it provides a single computer tape to its customer in response to a specific inquiry by that customer. Tax would apply, however, to additional copies provided to a customer, or in any situation where the taxpayer provides a significantly similar copy of information to a customer that was previously provided to another customer. 9/16/97. (M98–3).