Reference no: EM133415933

State X Sales Tax Law:

State X imposes a sales tax on any "retail sale" that occurs within the state. The law of State X defines a "retail sale" as "any transfer for value of the ownership, custody, or possession of tangible personal property. State X defines "tangible personal property" as anything that has a physical form and that can be seen, touched, and/or measured, and that is not real property or intangible property. Further, under the law of State X, the rental or lease of tangible personal property and the grant of a license to use or consume are deemed to be sales at retail.

Sales of taxable services are also defined as sales at retail. State X defines "taxable services" as: repair services when the repairs are made to tangible personal property; copying services; hotel room rental; parking services; and sales of admission to places of amusement or recreation.

State X additionally imposes a use tax on the "taxable use" of tangible personal property. Taxable use is defined as the storage, use, or other consumption in-state of a taxable item purchased from a retailer for storage, use, or other consumption in the state.

Based on the State X Sales Tax Law (above) explain whether the following transactions would fall within State X's definition of a "retail sale" or "taxable use":

1. The transfer of a Rolex watch to a pawn broker as collateral for a loan.
2. The "donation" of blood at a blood bank in exchange for cash.
3. The storage of equipment and parts at a facility located in State X for ultimate use in a construction project in State Y.
4. The payment of tuition to Salt U for which you get a complete set of DVDs recording a course held on campus with the right to take a test and earn a grade after one has completed viewing the DVDs.
5. The receipt of a free pen embossed with the Salt U logo upon payment of tuition for a course at Salt U.
6. The payment to Pens-R-Us for a box of pens embossed with the Salt U logo to be used for advertising purposes by Salt U.
7. The president of Pens-R-Us takes an embossed pen out of the box and uses it to sign contracts with Salt U.
8. The payment to a third-party vendor to emboss Salt U on a box of blank pens.
9. The purchase by Salt U of a car for the use of the president of Salt U primarily for official business.
10. The transfer of a pink Cadillac to a salesperson during the holidays, given as a reward for having the most sales in a year.