Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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430.0000 PRINTING AND RELATED ARTS—Regulation 1541

Annotation 430.0067


430.0067 Cutting and Folding. A printer provided the following situations, and asked for information on the application of the sales tax.

(1) A customer brings in some paper for us to cut.

When you make a charge for cutting paper for a customer who is a consumer, the charge is subject to tax as a sale of fabrication labor. (Revenue and Taxation Code section 6006(b).)

(2) Same as (1) except we provide the paper instead of the customer.

Tax applies to your total gross receipts from the sale including your charge for cutting the paper.

(3) A customer brings in a job, printed elsewhere, for us to cut and fold.

Sales tax applies to your charge for cutting and folding the customer's paper. However, if folding is for the purpose of mailing, and the charge for folding is separately stated on the invoice, it would be nontaxable. (Regulation 1541(c).) [now 1541(g).] (4) Same as (3) but customer is producing a brochure (map of the area with business card size advertisements) as a free promotional service. He does not charge anyone for the brochure. He does charge people for their advertisements. He mails 10% through the post office and delivers the rest himself.

From the information provided it appears that the brochure does not qualify as an exempt periodical. Accordingly, tax applies to your charge for cutting and folding except the charge for folding is nontaxable when folding is only for the purpose of mailing as noted in situation (3) above.

(5) Same as (4) but we do the whole job. The customer provides camera ready copy.

Sales tax applies to your charge. However, folding charges may be exempt as explained in (3) above. 6/5/91. (Am. 2001–3).

(Note: Regulation 1541 was amended September 1, 1999. Reader should note changes to the subdivision indicated above.)