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BTLG Table of Contents > Sales and Use Tax Annotations > A > 100.0000 Advertising Agencies, Commercial Artists And Designers > Annotation 100.0185

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A

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100.0000 Advertising Agencies, Commercial Artists and Designers—Regulation 1540

Annotation 100.0185

(c) Preliminary and Finished Art

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100.0185 Sales of Illustrations through an Agent. An illustrator obtains jobs through an artist's representative who acts as her agent. The representative obtains jobs for the illustrator and bills the clients. The representative retains a commission out of the payments received from the clients.

If the representative acts as an agent, both in obtaining jobs and billing the clients, the illustrator is responsible for tax on the full amount paid by the clients to the agent. Since the illustrator is the retailer, she is liable for the sales tax and the representative/agent should transmit the sales tax reimbursement collected from clients to the illustrator.

The representative should not pay tax directly to the Board unless the representative has issued a resale certificate to the illustrator (i.e., the representative is not acting as an agent). 12/7/93.