The company's process allows the parties to determine how design changes affect the ability to meet the requirements of zoning laws and neighborhood appearance. During each iteration, no tangible personal property is delivered to the architect. The company's contractual arrangements can be summarized as follows. Its activities include design development, presentation to clients, and marketing for clients. Contracts are typically for fixed fees plus any additional costs for prints.
Physical property provided to clients includes prints, CD-ROM, disks, slides and digital transfer.
Issues Your primary question is whether the transactions described above are taxable assuming that the client receives the company's simulation in the form of a print, CD-Rom, disk or slide. You have a series of additional questions that are predicated on the possibility that the company's transactions might be deemed taxable. Because we conclude that the company's transactions are not taxable, we have not evaluated these additional questions. An excise is imposed upon the retail sale of tangible personal property in the Commonwealth. See G.L. c. 64H, 2.