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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0518

(a) In General

120.0518 Sale—Transfer via Modem. The transfer of illustrations to a client via modem for a fee licensing their use is neither a sale nor a lease as there has been no transfer of tangible personal property. The fact that the illustrations could have been transferred on disc or on paper during the illustrator's routine visits to the client is irrelevant as neither alternative was taken. 3/11/94.