Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2017

Sales and Use Tax Annotations

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415.0000 PERSON

Annotation 415.0093

415.0093 Joint Venture—Characteristics. An artist and a printer "collaborated" to produce lithographs. The artist maintains that there was not a sale of the artwork to the printer, but rather the two were engaged in a joint venture.

A joint venture is a special combination of two or more persons without corporate or partnership designation, formed for the purpose of jointly seeking a profit in a specific venture, and for which purpose they combine their property, money effects, skill, and knowledge. There must be proof of a community of interest and a sharing of profits and losses, and each venturer must have a right in some measure to direct the conduct of others through a fiduciary relationship that must exist.

If these tests are met, the relationship will be considered a joint venture rather than one of seller and buyer. 2/17/72.