Ezel / Tax Rulings / CA

Were fees for customers to view a company's weather data through the Internet subject to California sales tax?

Short answer No. The Board agreed that sales tax did not apply to fees for customers to log in through their workstations and view the weather data.
State
CA
Ruling
Annotation 120.0101.800
Tax type
Sales and Use Tax
Issued
1996-07-10
Issued by
California State Board of Equalization
Requested by
A weather-information company's office manager asking about fees for Internet access to meteorological data
Topics
weather data internet access information services online services subscription fees
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1996. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1996
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a brief July 10, 1996 California State Board of Equalization assistant-chief-counsel letter about a meteorological-information company moving its service to the Internet. Customers paid to log in from their workstations and view weather data, and the official annotation states that no tangible personal property was transferred. The source gives no broader analysis. Modern online-information, subscription, data-service, and digital-product rules may differ. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A meteorological-information company was moving its weather-data service to the Internet. Customers paid a fee to log in from their computer workstations and view the data.

The Board agreed with its branch office that sales tax did not apply to the fee. The official annotation describes the transaction as involving no transfer of tangible personal property, while the short supporting letter provides no further legal analysis.

Source

Original ruling text

120.0101.800
STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

JOHAN KLEHS
First District, Hayward

LEGAL DIVISION - MIC: 82
450 N STREET, SACRAMENTO, CALIFORNIA
(P. O. BOX 942879, SACRAMENTO, CA 94279-0082)
TELEPHONE: (916) 445-3723
FAX: (916) 323-3387

DEAN F. ANDAL
Second District, Stockton
ERNEST J. DRONENBURG, JR.
Third District, San Diego
BRAD SHERMAN
Fourth District, Los Angeles
KATHLEEN CONNELL
Controller, Sacramento

July 10, 1996
E. L. SORENSEN, JR.
Executive Director

Ms. C--- C--Office Manager
M--- S---, Inc.
XXXXX W. T--- Road, -X5
--- ---, CA XXXXX
Account No. SR -- XX-XXXXXX
Dear Ms. C---:
This is in response to your letter of June 15, 1996, received in this office on July 10.
We understand that M--- S---, Inc., is in the process of moving its meteorological data
information services to the Internet. Your customers pay a fee to log onto your service through
their computer workstations and receive the weather data to look at.
We are in agreement with the analysis of Mr. Rick Mattson of our Ventura Branch
Office. The fee in question is not subject to sales tax.
Very truly yours,

Gary J. Jugum
Assistant Chief Counsel
GJJ:sr
cc:

Mr. Glenn A. Bystrom - MIC:43
Mr. Michael L. Webber
Ventura District Administrator - AR
Mr. Rick Mattson - AR

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