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BTLG Table of Contents > Sales and Use Tax Annotations > A > 100.0000 Advertising Agencies, Commercial Artists And Designers > Annotation 100.0306

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A

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100.0000 Advertising Agencies, Commercial Artists and Designers—Regulation 1540

Annotation 100.0306

(d) Property Transferred or Used

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100.0306 Artwork Used for Reproduction Purposes. A graphic designer who renders artwork and uses the photo mechanical transfer copy process to copy artwork for its client is making a use of the artwork. Thus, tax applies to the cost of such artwork to the graphic designer. If the graphic designer produced the artwork, tax is due only on the cost of the materials (ink, paint, illustration board, etc.,) consumed in producing the artwork.

However, such artwork would be sold prior to use if, before the graphic designer uses the artwork, the graphic designer and client enter into an explicit agreement that title to the artwork will pass to the client before such use. The intention to transfer title prior to the use of the artwork should be clearly expressed in writing constituting a part of the contract sale entered into prior to use of the artwork. 3/10/82.