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 120.2635

(b) Processing Customer-Furnished Information

120.2635 Microfiche Copies. A data processing service bureau provides processing services in microfiche form. The customers furnish information on various transactions which is processed to produce a magnetic tape. The tape is further processed to develop a negative which is called the "master copy." The company then makes one or more microfiche copies from the master copy. The master negative is retained by the company from one to six months, after which time the customer has the option to receive it at no extra charge or it is disposed of by the company.

With regard to the data processing service charge, tax does not apply to the charges made for the data processing as well as the production of both the master negative and the first microfiche copy which is made from the master negative and transferred to the customer. These charges are for the rendition of the nontaxable service. The charge for any additional copies of the microfiche furnished to the customer is subject to tax. 5/18/84.