Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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A

100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540

Annotation 100.0039

(a) IN GENERAL

100.0039 Fund Raising Consultant. A firm creates printed materials for use by nonprofit organizations in fund raising. It does consulting, research, copywriting, and project coordination. It subcontracts other work to graphic designers, printers, photographers, and others. All of these items are billed separately to the client.

Tax applies to the various charges as follows:

(1) The charge for "consulting and research" is subject to tax as services that are part of the sale of the printed matter.

(2) The charge for copywriting is subject to tax since the copy is written solely for use in the printed matter to be sold.

(3) The charge for graphic design is subject to tax. Charges for "preliminary art" which is clearly identified on the billing are exempt if the requirements for "preliminary art" as described in Regulation 1540 are met.

(4) Charges for writing a cover letter to be sent with the solicitation material are subject to tax.

(5) Tax does not apply to charges for addressing envelopes. 1/10/85.