September 23, 1981

You inquire whether the Massachusetts sales and use taxes apply to charges imposed by ********** ("Company") for developing microfilm. The Company takes microfilm from a customer, runs it through a series of chemical baths to develop it into a readable negative, and returns it to the customer.

Massachusetts General Laws Chapter 64H, Section 2 imposes an excise on retail sales of tangible personal property in Massachusetts by any vendor. Chapter 64I, Section 2 imposes an excise upon the storage, use or other consumption in Massachusetts of tangible personal property purchased from any vendor for storage, use or other consumption in Massachusetts.

"Sale" is defined for both a sales and use tax purposes as including:

"[t]he producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either direly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting." (G.L. c. 64H, s. 1(12); G.L. c. 64I, s. 1(1).)

Therefore, the Company's charges for developing microfilm are subject to the Massachusetts sales and use taxes.

Very truly yours

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

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LR 81-87