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
100.0163 Preliminary Art. Preliminary art is not taxable under certain conditions. One of the conditions is that title to the preliminary art must not pass to the client. If the preparer of the preliminary art gives possession of it to clients for purposes of review, the preparer must require the client to return the artwork. This is true even if the preparer intends to destroy the art immediately. 2/14/95.