<p>California Court of Appeal Says Intangibles in Telecom Sales Contracts Are Not Taxable</p>

California Court of Appeal Says Intangibles in Telecom Sales Contracts Are Not Taxable

The California Court of Appeal, Second District, held that sales tax was erroneously assessed on a telecommunications manufacturer's sales of equipment and software to telephone companies, saying that based on precedent, the tangible aspects of the contracts are subject to sales tax but the intangible portions, like software, are not taxable.