Was California DMV's charge taxable when it furnished driver-license public-record data on magnetic tapes, punched cards, or printouts?

Plain-English summary

California DMV furnished driver-license information for a charge using magnetic tapes, punched cards, or printouts. The arrangements included DMV-owned tapes supplied permanently or temporarily and customer tapes processed by DMV.

California treated the transactions as nontaxable government services. The memorandum said that when a statute or ordinance requires a government agency to furnish record copies, the transfer is a governmental service rather than a sale, regardless of whether law or an official sets the fee.

The then-current California Public Records Act covered state agencies, defined public records and writings broadly enough to include computer data and magnetic or punched media, and required identifiable records to be furnished for a reasonable fee in a form determined by the agency.

The result was the same whether DMV supplied the tape or processed a tape supplied by the requester.

What this means for you

Agencies and public-record requesters

The statutory duty to provide the record controlled, not the physical medium or whether the agency called the transaction a sale.

Accountants and tax professionals

Verify the agency's disclosure duty, applicable exemptions, delivery form, media ownership, processing work, fee authority, and current statutory numbering.

Common questions

Q: Was DMV's record-data charge taxable?

A: No.

Q: Did magnetic tape or punched-card delivery make it a property sale?

A: No.

Q: Did the result change when the requester supplied the tape?

A: No.

Citations and references

• Former California Government Code §§ 6250 et seq., 6252(a), (d), and (e), 6254, 6256, and 6257
• California Vehicle Code §§ 1810 and 1811

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 515.0185
• Original supporting opinion: 515.0185 PDF

Original ruling text

515.0185
Mr. Robert Nunes

Jan. 29, 1975

T. P. Putnam
Application of Sales or Use Tax to the Furnishing of Magnetic Tapes, Etc., by the Department of Motor Vehicles

You have asked whether sales or use tax applies to the furnishing by the Department of Motor Vehicles (DMV) of information concerning drivers’ licenses when the information is furnished in the form of magnetic tapes, punched cards, or printouts, and a charge is made. Your question applies with respect to tapes furnished by DMV either permanently or temporarily and also with respect to tapes supplied to and processed by DMV. We have consistently followed a rule that if the furnishing by a governmental agency of copies of records is mandatory by statute or ordinance, then, whether the amount of the charge is fixed by law or by a public official, the furnishing of the copies is an act of governmental service and not a sale. In view of the California Public Records Act (Sections 6250, et seq., of the Government Code) the furnishing by DMV of information of the kind here in question falls within the above rule. DMV is a state agency covered by the act (Gov. C., §6252(a)). “Public records”, as defined in the act, include any writings containing information relating to the conduct of the public’s business (§6252(d)). “Writing” includes symbols, magnetic or paper tapes, magnetic or punched cards, discs and drums (§6252(e)). On payment of a reasonable fee, any person is entitled to receive any identifiable public record or copy thereof including computer data, which is to be provided in a form determined by the agency (§6256, 6257). Some records are exempt from public disclosure (§6254), but those exemptions are not relevant here. There are two sections of the Vehicle Code, Sections 1810 and 1811, which permit DMV to “sell” information of the kind in question. The California Public Records Act, however, was enacted after those sections were enacted and must be regarded as controlling. That act makes it mandatory for DMV to furnish the information for a reasonable charge. In conclusion, the furnishing by DMV of information concerning drivers’ licenses, when the information is furnished in the form of magnetic tapes, punched cards, or printouts, constitutes a service rather than a sale for sales and use tax purposes, even though a charge is made. The same result follows whether tapes are furnished by DMV or supplied to and processed by DMV. TPP:lb