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BTLG Table of Contents > Sales and Use Tax Annotations > M > 340.0000 Mailing Lists and Services > Annotation 340.0125

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340.0000 Mailing Lists and Services—Regulation 1504

Annotation 340.0125

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340.0125 Single Use—What Constitutes. A person buys mailing lists under contracts which prohibit the person from making copies of the lists. Under Sales and Use Tax Regulation 1504, tax does not apply to transfers or uses of mailing lists, use of which is limited by contract to one time only. Thus, normally tax would not apply to the sale to or the use by the person of the lists. Occasionally, however, the person buys two copies of the same list. Since the exclusion from tax is, under the wording of the regulation, based on the charge for a single use list being regarded as a charge for the service of compiling the list, the sale or use of two copies of the list is taxable. In this case, the net effect is the purchase of a list to be used more than once and, accordingly, tax applies to the sale of the lists. 12/15/80.

(Note.—Subsequent statutory change, section 6379.8.)