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 120.1165

(b) Processing Customer-Furnished Information

120.1165 Copies of Reports. A taxpayer processes data for its customers and furnishes reports. The initial copy of each report is regarded as being furnished incidental to the service of processing and tax does not apply. The initial copy may be printed on paper, microfiche, or carbon copies produced simultaneously with the initial typing. Second and subsequent copies produced by printing are not regarded as being incidental to the performance of the service because they are not produced simultaneously with the original copy.

The taxpayer also furnishes its customers with real estate loan cards and perforated index cards. The real estate loan cards include the debtor's name and address, principal amount, interest rate, periodic payment amount, and other data calculated by processing customer-furnished information (e.g., delinquent amounts). The index cards are imprinted with summaries or extracts of information obtained from its files (e.g., interactive accounts). Tax does not apply to any item resulting from processing of customer furnished information. However, tax does apply to any item which is essentially printed to the order of the customer and does not involve processing of the information, such as gummed labels containing computer generated unassigned account numbers. 6/26/87.