Laws, Regulations and Annotations
Business Taxes Law Guide – Revision 2023
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
120.0000 Automatic Data Processing Services and Equipment—Regulation 1502
(a) In General
120.0600 Title Clause for Special Tooling. A manufacturer and retailer of printed circuit boards incorporates a title clause in the quotations given to its customers stating that title to all tools and computer programs, purchased or manufactured specifically for the contract which are used in the production or the testing of products, passes to the customer prior to the time the tools and computer programs are used by the seller.
Under these facts, the seller transfers title to the tools and computer programs to its customer prior to use in the manufacturing process. The seller may issue a resale certificate to its vendor to purchase the tools ex-tax. 8/23/93.