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BTLG Table of Contents > Sales and Use Tax Annotations > A > 100.0000 Advertising Agencies, Commercial Artists And Designers > Annotation 100.0187

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100.0000 Advertising Agencies, Commercial Artists and Designers—Regulation 1540

Annotation 100.0187

(c) Preliminary and Finished Art

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100.0187 Sketches as Finished Art. A commercial artist designs catalog page layouts in the form of rough sketches for a department store. The artist keeps the original sketches and gives copies of the sketches to the copywriter, typographer, photographer, and paste-up person to use in designing and preparing the final advertisement. Each person is under separate contract with the department store. The copies are not returned to the artist.

The artist's transfer of possession of the sketches or copies of the sketches, for a consideration, is a sale. The sketches do not qualify as preliminary art because the artist does not prepare the sketches solely to demonstrate an idea to the department store for approval before the artist prepares finished art. Rather, the sketches are the artist's finished art. 11/17/82.