Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(c) PRELIMINARY AND FINISHED ART
100.0159 Preliminary Art. In order to avoid tax on preliminary art, the work must be ordered before there was a contract or agreement or approval to produce the finished art. Accordingly, it is necessary for the agency commercial artist or designer to establish proof of ordering or producing preliminary art prior to the date of contract or approval of the final art. The mere designation of a separate charge for "design" and a charge for "production" is not sufficient proof. 6/22/93.