Did sales tax apply when the Board charged direct cost for public-record copies or created a typed transcript in a different form at a requester's option?

Plain-English summary

The Board's memorandum distinguished copying an existing public record from creating a new version of that record. When the Board kept a document as part of its business records, the public could obtain a copy for direct cost, and sales tax did not apply because the Board had a mandatory duty to provide it.

The Board did not have to change a record's form. If it voluntarily converted stenographic notes into a typed transcript at a requester's request, or prepared a publication such as the Business Taxes Law Guide, the resulting copy was taxable because creating and transferring that new form was discretionary rather than mandatory.

Applying that distinction, the Board's administrative-agenda minutes were existing public records. A direct-cost charge for a copy was not taxable.

The memorandum also said these rules were subject to Revenue and Taxation Code section 7056, but information disclosed in public Board meetings was no longer confidential.

What this means for you

Public agencies and record requesters

The source treated a mandatory copy of an existing record differently from a newly prepared transcript or publication.

Accountants and tax professionals

Identify the record actually maintained, the agency's disclosure duty, whether the format changed, and whether creating the requested item was mandatory or discretionary.

Common questions

Q: Was a direct-cost copy of an existing public record taxable?

A: No.

Q: Was a newly typed transcript taxable?

A: Yes, when the Board created it at its discretion.

Q: Were copies of the administrative-agenda minutes taxable?

A: No.

Citations and references

• California Revenue and Taxation Code § 7056

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 515.0238
• Original supporting opinion: 515.0238 PDF

Original ruling text

515.0238

3/12/86

To:

File

From:

Donald J. Hennessy

Subject:

Public Records Act and Confidentiality March 12, 1986
Conversation with John Abbott Re. Inquiry from Gene
Norris re. Request From REDACTED TEXT for a copy of the Board Minutes of the Administrative Agenda

Whatever we keep as part of our business records is a "public record" and the public may have a copy of it for a charge (direct cost), but no sales tax would apply to the charge since we are under a mandatory duty (see annotations) to provide such copy. We need not change the form of the business records we keep, e.g., we need not transcribe Bob Barnes' stenographic notes of a hearing into a typed transcript at the request of a member of the public. Whether or not we make up such a typed transcript is discretionary with us. If at our discretion, we do change the form of a business record at the request of a member of the public, e.g., we have Bob Barnes transcribe his notes into a typed transcript or we prepare the Business Taxes Law Guide, then the public may get a copy of the transcript or Guide for a charge (direct cost) and sales tax applies because it was not mandatory that we make up the transcript or Guide and transfer it to the requesting member of the public. Specifically as to the minutes of the Board's administrative agenda, it is a “public record” as kept by Douglas Bell or his assistant Janice Masterton. Therefore, the public must be provided a copy of the minutes for a charge (direct cost) and no sales tax applies since we are under a mandatory duty to provide such copy. All of the above rules are subject to the confidentiality provision of Section 7056, but anything appearing in the Board transcripts or minutes would no longer be confidential since they were revealed at a public meeting of the Board.