Ezel / Tax Rulings / CA

Was a fee to log onto an internet service and view meteorological data subject to California sales tax?

Short answer No. Customers only logged on through their own computer workstations to view weather data, and the company transferred no tangible personal property.
State
CA
Ruling
Annotation 515.0005.425
Tax type
Sales and Use Tax
Issued
1996-07-10
Issued by
California State Board of Equalization
Requested by
A meteorological data information service (identity redacted)
Topics
weather data internet access information services electronic delivery
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 California State Board of Equalization Assistant Chief Counsel opinion dated July 10, 1996, published by CDTFA as support for a sales and use tax annotation. It addresses only a fee for customers to log onto an internet service through their own workstations and view meteorological data, with no tangible property transferred. Another taxpayer should check current data-access, digital-product, software, download, and electronic-service rules. 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 data service to the internet. Customers paid a fee to log onto the service through their own computer workstations and view weather data.

The Board agreed with the field office's analysis that the fee was not subject to sales tax. The decisive stated fact was that the company transferred no tangible personal property to its customers.

The source is short and does not address physical reports, downloads, software, hardware, or any other delivery model.

What this means for you

Online data providers

A charge for viewing information online was treated as nontaxable when the transaction involved access only and no tangible property.

Weather-sensitive businesses

The opinion covered login access to meteorological data through the customer's own workstation.

Accountants and tax professionals

Do not extend the result beyond the stated facts. Determine whether the customer receives downloads, software, reports, equipment, or other property.

Common questions

Q: Was the internet weather-data fee taxable?

A: No.

Q: What did customers receive?

A: Access to view weather data through their computer workstations.

Q: Did the company transfer tangible property?

A: No, according to the opinion.

Q: Did the source decide the treatment of downloaded data or software?

A: No. Those facts were not discussed.

Source

Original ruling text

515.0005.425

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

July 10, 1996

KAETHLEEN CONNEL
Controller, Sacramento
E. L. SORENSEN, JR
Executive Director

Account No. REDACTED TEXT
Dear REDACTED TEXT,
This is in response to your letter of June 15, 1996, received in this office on July 10. We understand that REDACTED TEXT, 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 REDACTED TEXT 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 REDACTED TEXT Administrator Mr. Rick Mattson

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