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BTLG Table of Contents > Sales and Use Tax Annotations > A > 100.0000 Advertising Agencies, Commercial Artists And Designers > Annotation 100.0195

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A

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100.0000 Advertising Agencies, Commercial Artists and Designers—Regulation 1540

Annotation 100.0195

(c) Preliminary and Finished Art

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100.0195 Tracing the Final Drawing. After preliminary art (sketches) has been approved by a client, a separate piece of paper is placed over the preliminary art and the final drawing is traced in ink.

Assuming that the preliminary art satisfies all of the necessary criteria and that it is truly preliminary art (i.e. is a rough or visualization and does not have the detail of finished art), the charge for preliminary art is nontaxable regardless that it is then used by placing a separate piece of paper over it to trace the final drawing in ink.

However, an artist cannot produce finished art in this fashion, without seeking an interim approval from the client, and consider only the charge for labor of tracing as subject to sales tax. In this case, the product is not "preliminary art" because it is not produced solely for the purpose of obtaining approval from the customer. 6/30/92.