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 120.1170

(b) Processing Customer-Furnished Information

120.1170 Coupon Books. A taxpayer contracts to maintain records or accounts receivable for clients. Some clients desire that coupon books be prepared to show on each coupon the amount to be paid each month by the client's customers. The coupons are usually for a 12-month period. The amount may vary during the same 12-month period. The taxpayer produces the coupon books with electronic data processing equipment, places the books in envelopes and mails them to the client's customers. A separate charge is made for each book. The preparation of the coupon books is regarded as the same as preparing customer invoices. The taxpayer is providing a billing service for its clients. Tax does not apply to the charges for the coupon books. 7/22/77.