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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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A


120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0109

(a) In General

120.0109 Hourly Charge for Creating Illustrations. An independent contractor bills his time by the hour, creates designs and illustrations through a computer program, and then prepares a computer presentation file. The client has the option of showing the file on a computer, converting it into 35mm slides, or printing it on paper. Even though the contractor charges by the hour, the charge for creating designs and illustrations is subject to sales tax. Accordingly the charge for the computer presentation file is subject to tax. 10/14/93.