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BTLG Table of Contents > Sales and Use Tax Annotations > S > 515.0000 Service Enterprises Generally > Annotation 515.2000

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S

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515.0000 Service Enterprises Generally—Regulation 1501

Annotation 515.2000

(e) Miscellaneous Activities

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515.2000 Methaline Blue Test. A customer sends the taxpayer a sample piece of film which the customer has already processed. The taxpayer will run a test on the film called Methaline Blue Test. This is to check for any residue that might be left on the film. This test determines the longevity of the film.

If all the taxpayer transfers to its customer is a written report consisting of text only (no photographs, drawings, or diagrams) analyzing the results of the Methaline Blue Test, the taxpayer is regarded as providing a nontaxable service. The transfer of the written report to the customer is incidental to the service provided by the taxpayer. Tax applies to the sale of the property (i.e., paper) to the taxpayer or to its use of that property. On the other hand, if the taxpayer transfers any other tangible personal property to its customers, such transfer would be regarded as retail sale of tangible personal property subject to sales tax. 10/30/95.