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 120.1160

(b) Processing Customer-Furnished Information

120.1160 Computerized Services. A taxpayer provides certain computerized services for automobile service stations. The client service stations are provided with work order forms, mailers, and certain other supplies. The clients send a copy of the work order on each lube job, etc., to the taxpayer weekly. The customer's name, address, car mileage, type of work, etc., is taken from the work orders and entered into a computer. The computer produces an immediate "thank you" card that is sent directly to each client's customer. The clients receive a monthly customer listing printout, alphabetized and in zip code order, showing various data such as work order breakdown, employee production, etc. The taxpayer charges a one-time fee for computer set up, work orders, and supplies. Thereafter, there is a charge per card mailed, a charge per page for the customer listing printout, and a monthly charge for a management fee, plus shipping charges.

This taxpayer is processing customer furnished information when it inputs information from client work orders and produces a monthly report from this information showing customers listed in either alphabetic or zip code order, types of service, etc. It has been held previously that listing by zip code, for example, is regarded as more than "reformatting" as that term is used in Regulation 1502. Moreover, the information provided states that other tabulated information is available.

This taxpayer is the retailer of the cards it prints and sends to the client's customers and the charge made for printing the cards is also subject to tax. Since this taxpayer makes a single charge that includes the printing, postage, and mailing services, this taxpayer is entitled to make some segregation of the total charge per Regulation 1504(c)(2). 5/17/82. (Am. 2004–2).