Rule 23. - Printed matter.

(a)

Sales by printers of advertising circulars, books, briefs, envelopes, folders, posters, round forms, shopping guides, tickets, and other printed matter, to persons who do not resell such articles in the regular course of business but who either consume them, lease them, or distribute them free of charge are subject to sales tax. Sales of such matter to dealers for resale in the regular course of business are wholesale sales and therefore not subject to the sales tax. A printer may not deduct from the selling price of such property the cost of labor, author's alteration or other service charges in performing the printing, even though such charge is stated or shown on any evidence of sale separately from the charge for stock. Such costs are considered part of the cost of the completed articles sold.

(b)

If stamped envelopes or government postals are purchased and printed for customers or il stamps are provided, the amount of the postage should be deducted in determining the sales price for taxable purposes.

(c)

Sales of printed matter to advertising agencies who purchase for their own use or for the use of their clients and not for resale in the regular course of business are deemed to be sales for consumption.

(d)

Sales of tickets to theater owners, amusement operators, transportation companies, and similar operators are sales for consumption.

(e)

Sales of school annuals and similar publications by printers to school districts, private schools, or student organizations are taxable sales.

(f)

The furnishing of printing or overprinting, lithographic, multilith, blueprinting, photostating, or other similar services of reproducing written or graphic matter with materials owned by others is a sale of services, and charges therefore are subject to the sales tax.

(g)

Sales to printers of equipment, supplies and materials which do not become a component part or ingredient of the finished printed matter sold are taxable. Such sales include sales of stationery, engraving, furniture, lubricants, machinery, type, lead slugs, and mats.

(h)

Sales to printers of plates which can be used for a particular customer only are considered as being purchases for resale. When the printing job is finished, and the plate is either delivered to the customer or is retained by the printer for the customer's convenience, the printer should include in his bill to the customer the price of the plate and collect the sales tax on the total price of both the printing and the plate.

If the plates are not peculiar to one particular customer but may be used by the printer in serving other customers, the plates are considered to be purchased by the printer for his own use and tax should be paid by the printer at the time of purchase.

(i)

Where business establishments buy plates from nonresident manufacturers and have their work done by nonresident printers the plates are considered as being purchased for consumption and tax should be paid by the business establishment at the time of the purchase.

(j)

Sales to printers of paper stock and ink which become a part of the printed matter sold are considered sales for further processing and are not subject to the tax.