Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(c) PRELIMINARY AND FINISHED ART
100.0111 Catalog Layouts. A commercial artist designs catalog page layouts in the form of rough sketches for a client. He keeps the original and gives copies to the copywriter, typographer, photographer, and paste-up person, each of whom is under separate contract with the client. The copies are not returned to the artist. The sketches do not qualify as preliminary art because they are not prepared to demonstrate ideas to the client before the finished art is prepared. The sketches are the finished art. The transfer of possession of the copies for a consideration is a sale for sales and use tax purposes. 11/17/82.