Sales and Use Taxes: Information Services discusses the applicability of sales and use taxes to the information services industry. The area of information services is marked by constant innovation in computer and telecommunications technology. Since state statutes rarely advance as rapidly as technology, practitioners often struggle to determine the application of outdated statutes to new services. Written by J. Elaine Bialczak, Esq., Compton & Associates, LLP, this Portfolio compiles and organizes—to the extent possible—the statutes, regulations, and case law comprising the body of sales tax law applicable to the information services industry in each state.  

Sections 1320.02–.04 review the statutes, regulations, and published rulings of the states that have specifically addressed sales and use taxation of information services. These Sections, therefore, provide an overview of the various methods of sales and use taxation adopted by state legislatures and tax administrators.  

Section 1320.05 reviews the analysis by the courts and administrative tribunals of the statutes and regulations specifically concerned with sales taxation of information services.  

In addition, decisions are reviewed that consider, under traditional sales and use tax statutes, whether the transfer of printed material, tapes, or disks containing information is actually a taxable transfer of tangible personal property or a nontaxable transfer of intangible property, i.e., information. In some cases, tax administration rulings are also analyzed. Sales and Use Taxes: Information Services allows you to benefit from: 

• Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area.
• Invaluable practice documents including tables, charts and lists.
• Plain-English guidance from world-class experts.
• Real-world and in-depth analysis that lets you explore various options.
• Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more.
• Alternative approaches to both common and unique tax scenarios.

This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.

Detailed Analysis

1320.01. INTRODUCTION

1320.02. TREATMENT BY STATUTE

Introductory Material

A. Statutes Using the Term “Information Services”

1. District of Columbia

2. New Jersey

3. Ohio

4. Texas

B. Statutes Using Terms Other Than “Information Services”

1. Connecticut

2. Florida

3. Massachusetts

4. New York

5. Ohio

6. Pennsylvania

7. South Carolina

8. Vermont

9. West Virginia

C. Non-Enumerated Services

1. Georgia

2. Hawaii

3. Kansas

4. Louisiana

5. Maine

6. Missouri

7. Nebraska

8. Nevada

10. South Dakota

11. Tennessee

12. Wyoming

1320.03. TREATMENT BY REGULATION

Introductory Material

A. Arizona

B. Arkansas

C. California

D. Colorado

E. Idaho

F. Illinois

G. Iowa

H. Michigan

I. Minnesota

J. Mississippi

K. New Jersey

L. New Mexico

M. North Carolina

N. North Dakota

O. Oklahoma

P. Rhode Island

Q. Utah

R. Washington

S. Wisconsin

1320.04. TREATMENT BY PUBLISHED OPINIONS

Introductory Material

A. Alabama

B. Indiana

C. Kentucky

D. Virginia

1320.05. HOW STATES APPLY THEIR STATUTES AND REGULATIONS

Introductory Material

A. The True Object Test

1. Information Provided Over Computer Networks

a. Is the True Object the Computer Service or the Information Service?

(1) Connecticut

(2) Florida

(3) Ohio

(4) South Carolina

b. Is the True Object the Equipment or the Service?

(1) The Quotron Cases

(2) Virginia Ruling

(3) The Wisconsin Dow Jones Case

2. Information Services That Furnish Reports

a. Looseleaf Reports

(1) Looseleaf Tariff Reports

(a) Idaho

(2) The Dodge Reports on Construction Projects

(a) Maryland

(b) Massachusetts

(c) Missouri

(d) Ohio

(3) Multiple Listing Services

(a) Idaho

(b) Illinois

(c) New York

(d) South Carolina

(e) Texas

(f) Virginia

b. Special Reports

(1) Research and Development Reports

(a) New York

(b) Virginia

(2) A.C. Nielsen Marketing Reports

(a) Kentucky

(b) New York

(c) Ohio

(3) Automotive Claims Reports

(a) New York

(4) Laboratory Reports

(a) New York

(5) Accounting Reports

(a) New York

(6) Insurance Claims Reports

(a) New York

(7) Non–Taxable Components of An Inseparable Package

(a) New York

(8) Periodical Is Not an Information Service

(a) New York

c. Subscription and Mailing Lists

(1) Maryland

(2) Minnesota

(3) Utah

(4) Virginia

3. Transferring Information Onto a Different Medium

a. California

b. Connecticut

c. Utah

d. Virginia

e. West Virginia

B. Manufacturing Exemption for Provider's Hardware

1320.06. TELECOMMUNICATIONS, INFORMATION, AND VIDEO SERVICES

A. Telecommunications and Information Services

B. Video Services

1. Entertainment and Information Services

a. Arkansas

b. California

c. Connecticut

d. Illinois

e. Indiana

f. New York

g. Ohio

h. Texas

2. Transmission Services

1320.07. CONCLUSION

Working Papers

Item Description Sheet

Worksheet 1 UNIFORM PRINCIPLES GOVERNING STATE TRANSACTIONAL TAXATION OF TELECOMMUNICATIONS - VENDEE VERSION

Worksheet 2 UNIFORM PRINCIPLES GOVERNING STATE TRANSACTIONAL TAXATION OF TELECOMMUNICATIONS - Vendor Version

Worksheet 3 Supporting the Information Highway: A Framework for State and Local Taxation of Telecommunications and Information Services

Worksheet 4 Taxation of Information Services

Bibliography

Bibliography