Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(a) IN GENERAL
100.0010 Advertisements in the Form of Sketches. Sales tax applies to retail sales of "spec ads," to a client which are produced prior to the sale of advertising space, even though the advertisements may be only in the form of sketches. Tax also applies to the purchase of tangible personal property used in producing the product that is sold. Only tangible personal property purchased for the purpose of being incorporated into the advertisement may be acquired without the payment of tax. 3/4/93.