Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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442.0000 PUBLISHERS—Regulation 1543

Annotation 442.0041

442.0041 Charges to Publishers. Charges for consultation, preliminary design supervision, preliminary design, copy editing, coding and preliminary layout are all charges for author or design services which are regarded as services related to the sale of tangible personal property. Tax applies to these charges unless the charges are separately stated and neither title nor possession of layouts is transferred to the customer other than briefly for purposes of review and approval.

Charges for converting text files to make them compatible with a word processing program are charges for work that is part of typography which is a "production function" as that term is defined in Regulation 1543(a)(4). The charges for typography are part of the gross receipts from the finished product unless the work is completed before authorization is given for completion of the final product. (See Regulation 1543(b)(3)(B).

Charges for production management, final composition, corrections, film positives or negatives, photography and other materials are taxable. 8/10/94.