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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 515.0019.200
(a) In General—Service Distinguished from Sale
515.0019.200 Temperature Monitoring Devices—Service vs. Lease. A contract under which a firm provides in-transit temperature monitoring devices to carriers is a contract for services even though physical possession of the device passes to the carrier. The device records the internal temperature of the cargo compartment of the vehicle without the presence of the provider's staff. The presence of the device may tend to inhibit false spoilage claims. The instruments must be read by an expert and the provider extends further cooperation without additional charge. The instrument is of no direct benefit to the carrier and the testimony of the provider's staff in arbitration or court proceedings over liability for spoilage is the most desired of the contract benefits. On balance, the true object of the contract is not the possession of the device. Thus, it is a contract for services, not a lease of tangible personal property. 2/28/80.