Tax Type
Retail Sales and Use Tax
Description
Word processing/repetitive documents; Document copies
Topic
Exemptions
Property Subject to Tax
Taxability of Persons and Transactions
Date Issued
04-28-1994
April 28, 1994
Re: Request for Ruling: Retail Sales & Use Tax
Dear**********
This will reply to your letter in which you seek a ruling on the applicability of the sales and use tax to various word processing activities of your company, ******** (the "Taxpayer"). I apologize for the delay in responding.
FACTS
The Taxpayer operates a word processing business. Transactions questioned by the Taxpayer will be addressed separately in the following section.
RULING
Repetitive Documents
In performing word processing for a customer, the Taxpayer may perform a search and replace function on a multiple page document to identify specific companies solicited and the date of the solicitation as well as perform other alterations. The documents are not typed from scratch but copied and edited as necessary. The Taxpayer wants to know if this operation falls in the category of repetitive letters, which may be taxable, or editing and formatting, which may be exempt.
The total charge for multiple copies of these documents, including the services connected with this charge, i.e., formatting, editing, copying, updating, modifying information, and other alterations, is taxable even when each document has slight variations in its text. Further, the total charge for producing multiple copies of a document is taxable regardless of whether a search and replace technique or a mail merge technique is used. See the enclosed PD 88-254 (September 8, 1988) for more information.
Copying Documents
The Taxpayer makes a charge for copying previously created files of their customers to use as a starting point of performing word processing jobs. In addition, they reprint previously delivered jobs for customers, where no additional changes are made. The Taxpayer wants to know if these charges are taxable.
When a word processor provides an exempt service, i.e., preparing an original letter or document, then the charge made for copying previously created files of the customer that is connected with that service is likewise exempt from the tax. However, if the word processor moves beyond the rendering of a service and actually sells tangible personal property, i.e., repetitive letters or documents, then the total charge, including such services connected with the sale, is taxable. See the enclosed PD 86-164 (August 4, 1986) for more information.
Lastly, charges that are for reprints of a previously delivered word processing job are taxable regardless of whether the original job was an exempt service or a taxable sale of tangible personal property.
Should you have further questions, please contact the department.
Sincerely,
Danny M. Payne
Acting Tax Commissioner
OTP/6274N
Rulings of the Tax Commissioner