Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
S
515.0000 Service Enterprises Generally—Regulation 1501
Annotation 515.0014
(a) In General—Service Distinguished from Sale
515.0014 Scholarship Search and SAT Preparation Program. A company provides students with a computer produced personalized report detailing grants, scholarships and student aid programs the student is most likely to qualify for. It also provides an outline illustrating the steps the student needs to take to apply and receive the student aid awards listed. It appears the report is generated from a database in response to a questionnaire provided by the student. The report provides information which is unique to each student, even though a portion of the report may be identical for all students. It is assumed that the unique portions of the report greatly outweigh the identical portions.
The company also provides a SAT preparation program. Students take a simulated SAT test which the company analyzes by a computer program. It then provides the students with a report designed to help them solve the questions they got wrong or didn't understand and other test taking strategies they can use to raise their scores. Based on information provided, the company is providing a nontaxable service. The company is the consumer of the property it incidentally transfers to the students and must pay tax on its purchases of such property. 10/9/92.