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 430.0244


430.0244 Camera-Ready Art. A graphic artist does the design, layout, and prepares camera-ready art for a client who publishes a monthly newsletter. On occasion, the artist may also contract to print the newsletter.

In those cases where the artist only sells the camera-ready art, the sale from the artist to the client is subject to tax, even if the sale of the printed matter is exempt. For example, an artist contracts to provide only camera-ready art for the client, and the client separately contracts with a printer for the printing work. The delivery of the camera-ready art to the client, or to the printer for the benefit of the client, would result in a taxable sale even if the printer's sale to the client is exempt.

On those occasions when the artist contracts with the client to print and sell the newsletter to the client, the gross receipts from the sale of the newsletters would not be subject to tax if the sale is for resale or qualifies for the periodical exemption. In such cases, if the artist only incidentally produces the camera-ready art for its own use, as a manufacturing aid, and does not transfer title or possession of the artwork (manufacturing aid) to the client, then the artist is the consumer of the camera-ready art. If this occurs, tax would apply to the sale of materials to the artist, which were used to produce the camera-ready art. 11/27/89.