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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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A


100.0000 Advertising Agencies, Commercial Artists and Designers—Regulation 1540

Annotation 100.0032.250

(a) In General


100.0032.250 Evidence Artwork was Transferred by Modem. The transfer of artwork by remote telecommunications, such as modems, is not a sale of tangible personal property. Thus, tax does not apply to charges for artwork that is transferred by modem. The advertising agency must retain some form of evidence to support the claim of transmittal by modem. Such evidence could include the acknowledgment of receipt indicating the recipient's receipt of the artwork by modem. It is also suggested that the seller, advertising agency, state on the invoice that delivery was by modem and retain a hard copy of the artwork with a dated notation of the electronic delivery. 1/28/97.