Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(b) DELINEATORS AND DESIGNERS
100.0074.500 Designing Advertisements. Clients send the taxpayer pencil outlines of a proposed advertisement. The taxpayer buys camera work for line art and spec and typesetting. She designs the ad and sends proofs to the client. Subsequently, she buys color composite film which is sent to a magazine in which the ad will appear.
Tax applies to the charge for designing and developing the ad in the form of the color composite film. Those items which are physically incorporated into the color composite film may be purchased for resale. Items such as photographs which are not physically incorporated into the color composite film cannot be purchased for resale. 5/16/88.