Tax Type
Retail Sales and Use Tax
Description
Microfilm and Microfiche Records
Topic
Basis of Tax
Date Issued
10-22-1982
October 22, 1982
Re: Ruling Request/Sales and Use Tax
Microfilm and Microfiche Records
Dear ****************
This responds to your letter of May 20, 1981, requesting a ruling on the application of sales and use tax to sales of microfilm and microfiche records by your company and to the supplies and copies purchased by your company.
FACTS
******* is a profit-making organization providing microfilm services to customers. It receives written records from businesses and individuals, converts these records to microfilm, and returns the records and film to the customer. It also produces microfiche from magnetic tapes supplied by the customer. buys supplies which are consumed in producing the microfilm for its customers. It also buys elsewhere copies of the microfilm when customers request several copies.
DETERMINATION
The sale of microfilm and microfiche records is analogous in certain respects to the sale of certain photographic products under Sales and Use Tax Regulation §1-82, i.e., photographs, photostats, blueprints, slides from-camera film, etc. As a retailer selling tangible personal property, you should collect sales tax on the total sales price of furnishing the microfilm or microfiche to the customer. However, unlike the development of film, the production of microfilm and microfiche records does not involve a physical conversion of the actual written records or the magnetic tapes supplied by the customer. Therefore, you may not separately state a charge for services of producing microfilm or microfiche from a charge for the tangible film or fiche.
As the sales of the microfilm or microfiche are taxable, your purchases of supplies that become component parts of the finished products may be purchased under a resale certificate of exemption.
As to the copying you purchase elsewhere on behalf of your customer, you would also be exempt from paying the sales tax under your resale certificate exemption. Your customers, however, must pay you the sales tax on the copies purchased for them.
Please let us know if we can be of further assistance to you in applying the sales tax-law to Your business.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner