(a)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Administrative supplies-
(i) Tangible personal property which is
consumed in one of the following manners:
(A)
Used but not transferred by a vendor in the performance of secretarial and
editing services.
(B) Transferred
by a vendor to another party in connection with the performance of the vendor's
services when the property is not a critical element of the service.
(ii) Examples of the property
include sales invoices, receipts, contracts, estimate sheets, confirmations or
other similar items.
Court reporting-Services performed by an
individual who records and transcribes verbatim a report of proceedings in a
court of law.
Editing services-Services performed upon
written material, film, videos and audio tape, including altering, adapting,
refining, proofreading or confirming. The term also includes reviewing for
clarity, authenticity and meaning, and assembling by cutting or
rearranging.
Mail processing services-Services that
prepare property for bulk mailing or shipping, such as bursting, folding,
collating, stuffing, addressing, bar coding, affixing labels, stamping,
sorting, bundling or bagging in accordance with bulk mail specifications of the
United States Postal Service or other transportation systems. The term does not
include these services when performed in conjunction with secretarial services
or the sale of tangible personal property.
Secretarial services-Services which
include preparing correspondence or performing routine and detailed office
work, letter writing, proofreading, resume writing, typing, word processing or
telephone answering services. The term does not include separately stated
charges for notary seals, completion of forms, mail processing services,
stenographic services or court reporting services.
Stenographic services-Services performed
by an individual who both records information by machine or shorthand from
dictation or oral discourse and transcribes the information.
(b)
Scope.
(1) Effective October 1, 1991, the sale at
retail or use of secretarial or editing services is subject to tax.
(2) Services performed for a purchaser who is
located in this Commonwealth are presumed to be predominately used in this
Commonwealth and subject to tax. Services performed for a purchaser who is
located outside this Commonwealth are presumed to be predominately used outside
this Commonwealth and not subject to tax. For example:
(i) A Maryland resident purchases the
services of a Pennsylvania secretarial service company to type a resume to be
delivered in Maryland. The service is exempt from tax.
(ii) A Pennsylvania resident purchases
services from a Pennsylvania secretarial service company to type one hundred
letters and mail them to individuals throughout the country. The total charge,
including charges for mail processing, is taxable.
(iii) A purchase by a Maryland resident in
subparagraph (ii) is exempt even though some of the letters would be received
by residents of this Commonwealth.
(3) The sale at retail or use of secretarial
or editing services provided in conjunction with the performance of a
nontaxable service is taxable unless the secretarial or editing service being
provided is incidental to the nontaxable service. For example:
Company A receives 1,000 pamphlets, envelopes and labels
from Company C. Company A is to fold and stuff the pamphlets into the envelopes
and affix the mailing labels. Company A is also to type and insert a letter in
every two hundredth envelope indicating that the recipient has won a prize. The
typing of the letter is incidental to the nontaxable service of folding,
stuffing and attaching labels and therefore is not taxable.
(c) Examples of taxable
secretarial and editing services include:
(1)
An individual purchases the services of a resume writer to write, format and
type a resume.
(2) An individual
purchases the services of a typist or word processor to type the name and
address on envelopes from a prepared listing of some of the residents in the
individual's development.
(3) A
sole proprietor purchases a telephone answering service from an independent
contractor.
(4) A secretary types a
letter from a cassette tape dictated by the author.
(5) A publishing company purchases an editing
service to proofread manuscripts prior to printing.
(6) An individual purchases the service of
editing a home video and inserting music.
(d) Examples of services which are not
secretarial and editing services:
(1) The
recording and transcribing of a deposition by a stenographer.
(2) The completion of auto registration forms
by a notary.
(3) The providing of a
messenger service that is not made in conjunction with a taxable sale or
service.
(4) The providing of a
temporary help service employe to replace a secretary who is on vacation. See
§
60.4 (relating to help supply
services).
(5) The folding and
inserting of letters in envelopes, which are provided by the customer, and
affixing postage and mailing the letters.
(e)
Purchase price. The
total amount charged for performing secretarial and editing services is subject
to tax. The failure to separately state the charge for taxable secretarial and
editing services from other nontaxable charges on the invoice requires the
charging of tax on the total amount. Charges for delivery of a secretarial and
editing service, including postage, handling and insurance, are also subject to
tax.
(f)
Exclusions.
(1) Secretarial
and editing services are exempt from tax if purchased by qualified charitable
organizations, volunteer fire companies, religious organizations and nonprofit
educational institutions, except if used in an unrelated trade or business; the
Federal government or its instrumentalities; or the Commonwealth, its
instrumentalities or subdivisions, including public school districts. The
manufacturing, printing, publishing, processing, farming, dairying, mining or
public utility exclusion does not apply.
(2) The vendor of secretarial and editing
services may claim the resale exemption upon the purchase of tangible personal
property which is tranferred to the purchaser or a third party in the
performance of secretarial and editing services. The vendor may also purchase
from another provider secretarial and editing services which the vendor resells
to its customer. The vendor may not claim the resale exemption upon its
purchase of administrative supplies or another taxable service which it may use
in the performance of its secretarial and editing services.
(i) The following are examples of property
which may be purchased exempt for resale when used in performing secretarial
and editing services:
(A) Writing or typing
paper.
(B) Envelopes.
(C) Labels.
(D) Typewriter ribbons.
(ii) The following are examples of property
which is taxable when used in performing secretarial and editing services:
(A) Rulers.
(B) Staplers.
(C) Typewriters.
(D) Word processors.
(E) Administrative supplies.
(F) Postage meter devices.
(3) Persons who are
engaged in the business of printing as well as rendering secretarial and
editing services should refer to §§
32.1 and
32.36 (relating to definitions;
and printing and related business).
