Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
100.0000 ADVERTISING AGENCIES, COMMERCIAL ARTISTS AND DESIGNERS—Regulation 1540
(d) PROPERTY TRANSFERRED OR USED
100.0340 Engravings for Out-of-State Periodicals. Advertising agencies are consumers of engravings produced for them for use in fulfilling advertising contracts with customers. When the advertising is to be placed in a periodical published outside California, and the contract requires the engraver to send the finished engraving directly to the publisher, the sale is in interstate commerce and exempt. The furnishing of the customary number of proofs for the purposes of inspection and approval will not affect the exemption. If a substantial number of proofs are printed pursuant to orders of the agency or the customer and are used for purposes other than inspection and approval, the charge for the engravings is subject to tax. 12/4/68.