Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(c) PRELIMINARY AND FINISHED ART
100.0162 Preliminary Art. A designer produces various types of artwork which include discussion of concepts, preliminary roughs, finished artwork and photo retouch. Some customers use the artwork to produce t-shirts, brochures, etc., and charge their customers for artwork, film, and the final product. The designer's customer generally is the consumer of artwork and tax applies to the sale.
If the client's contract with its customer provides that title to artwork passes prior to use, the designer may accept a resale certificate but should require the customer to include a statement that the specific property is being purchased for resale in the regular course of business. Provided that the resale certificate was taken in good faith, tax will not apply to the sale of the artwork. 8/31/92.