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 120.2828

(b) Processing Customer-Furnished Information

120.2828 True Object of Contract. In addition to converting a customer's typed documents to computer readable form by means of optical character recognition equipment, a taxpayer also performs certain "processing of customer-furnished information" services such as deleting headnotes, footnotes, or handwritten notes, and the resequencing of pages provided by the customer. Although these latter services are in the nature of processing of customer-furnished data, they are of minimum significance in relation to the end product of computer readable media. The true object of the contract is the conversion of the data from one medium to another, which is a taxable event pursuant to Regulation 1502. 5/30/91.