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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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P


430.0000 Printing and Related Arts—Regulation 1541

Annotation 430.0379

(c) Composition; Typography; "Reproduction Proofs;" Paste-Ups


430.0379 Out-of-State Preparation of Camera-Ready Art and Paste-Ups. A California publisher purchases typography, camera ready art, and paste-ups for use in publishing books. Since all of the typography includes artwork, its transfer is subject to tax unless otherwise exempt. These items are purchased from both instate and out-of-state sources. After review of the products in California, they are sent by the publisher to out-of-state printers for use.

Purchases from out-of-state retailers are not subject to tax pursuant to section 6009.1 if they are not used in California and are shipped out of state for use solely outside of California. Sales by California retailers are generally subject to sales tax since they are delivered in California. However, in some cases the property sold by a California retailer is sent to the publisher and then returned to the California retailer by the publisher for last minute changes. The property is then shipped by the retailer to the out-of-state printer pursuant to the contract of sale. Under these circumstances, the sale by the California retailer is exempt from tax as an interstate sale. The temporary transfer to the publisher for approval would not negate the exemption. 3/11/82.