Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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A

100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540

Annotation 100.0250

(c) PRELIMINARY AND FINISHED ART

100.0250 Where Preliminary Art Is Found Taxable. Company contracts to write, design and print a brochure for the State of California. Charges made to the state include "preliminary art."

Tax applies to the total sale price of the printed brochures with no deduction for the charge for preliminary art. "Preliminary Art" is taxable because it is not required to be prepared before entering into the contract or before obtaining approval of the finished art. Sales and Use Tax Regulation 1540(a)(11). 10/21/91. (Am. 2005–2).