Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
430.0000 PRINTING AND RELATED ARTS—Regulation 1541
(b) PRINTING AIDS
430.0242 Artwork Licenses. A taxpayer obtains the license to use artwork from an artist. The taxpayer licenses the use of the design to clothing manufacturers who reproduce the artwork on items of clothing. The taxpayer transfers to the clothing manufacturer the very same artwork which was obtained from the artist rather than a reproduction. Assuming the artwork is not returned to the artist, the artist's transfer of artwork to the taxpayer is a sale for resale. The taxpayer's transfer to the clothing manufacturers is taxable unless the transfer constitutes a sale in interstate commerce or is otherwise exempt. 6/14/94.