SECTION 3.312. Graphic Arts or Related Occupations; Miscellaneous Activities

(a) Decorative or informative activities; graphic art.

(1) Photographers, commercial artists, portrait painters, and persons who draw, paint, engrave, and etch are graphic artists.

(2) Persons who paint or apply decorative material to tangible personal property are also engaged in graphic art activities. Examples of graphic artists performing decorative or informative activities include painting murals, pinstriping, or painting signs on motor vehicles.

(3) Sales tax is due and should be collected by the graphic artist from the customer on the total charge for the art.

(4) Persons who furnish their own supplies in pursuit of their work including photographers, commercial artists, portrait painters, etc., shall pay a tax on their supplies, equipment, and any other taxable items used by them. However, when supplies or materials will become an ingredient or component part of a finished product held for sale, the materials are not subject to tax at the time of purchase by the artist. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).

(b) Printing, imprinting, word processing, and multiple reproduced computer-generated material.

(1) Sales tax is due on the total charge for producing multiple copies of printed material regardless of the type of equipment used in the reproduction.

(2) Multiple copies include computer-generated form letters produced with a slight variation which personalizes essentially the same letter. Tax applies to the entire charge without deduction for charges for setting up the machine, keyboarding, or assembling the material. Charges for providing additional copies are taxable regardless of whether the original was prepared using a typewriter or word processing equipment.

(3) Sales tax is due on charges for furnishing original letters or other printed material prepared by using word processing or other data processing equipment. See §3.330 of this title (relating to Data Processing Services).

(4) Persons who produce, process, print, or imprint tangible personal property, when the materials used in these processes have been furnished by the customer, must collect sales tax on the total charge for such work. This includes photo finishers, book binders, printers, and film developers.

(c) Protective or maintenance activities.

(1) The repair, remodeling, maintenance, and restoration of tangible personal property is a taxable service. The total amount charged the customer for labor and materials is subject to tax.

(2) Persons who apply substances to tangible personal property, other than motor vehicles, private aircraft, and commercial vessels, for the purpose of protection or maintenance are covered by §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). Examples of protective or maintenance activities for tangible personal property other than motor vehicles, private aircraft, or commercial vessels include painting, rustproofing, undercoating, chrome plating, and the application of polishes, waxes, and glazes.

(3) Persons maintaining private aircraft, motor vehicles, or commercial vessels should refer to §3.359 of this title (relating to Motor Vehicle and Private Aircraft). When private aircraft, motor vehicles, or commercial vessels are being protected or maintained, such as the application of decorative molding, sunshield, and tinting to motor vehicles, it makes no difference if an item is being painted or repainted, coated or recoated, waxed or rewaxed. The taxability of the activity will be determined by the type of contract used, or, in absence of a contract, the type of billing, either lump-sum or separated, which is used by the provider of the activity. Persons repairing or maintaining aircraft other than private aircraft should refer to §3.297 of this title (relating to Carriers).

Source Note: The provisions of this §3.312 adopted to be effective January 1, 1976; amended to be effective October 30, 1984, 9 TexReg 5387; amended to be effective February 12, 1986, 11 TexReg 547; amended to be effective October 3, 1990, 15 TexReg 5412; amended to be effective July 29, 1992, 17 TexReg 5119.