Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(c) PRELIMINARY AND FINISHED ART
100.0120 Computer Created Preliminary Art. Charges for "preliminary art" created through the use of computers are not taxable provided the criteria of Regulation 1540(a)(11) are followed. The seller must retain proof of the client's ordering (or of the artist producing) the preliminary art prior to the date of the contract for finished art and the charge for preliminary art must be separately stated. Hard copy of each of the roughs, visualizations, layouts or comprehensives which are presented for the client's approval must be retained for audit purposes. 5/27/93. (Am. 2005–2).