Section 372.229 - Desktop publishers1. As used in this section, the term "desktop publisher" means a person who is in the business of producing original written or graphic material, or both, or refining, arranging, designing or otherwise modifying, editing, writing, rewriting or redesigning material, or any combination thereof.2. Purchases of tangible personal property by a desktop publisher are subject to the sales tax if the property is acquired for use in the operation of the business. As an example of the application of this section, the purchase of a laser printer by a desktop publisher for use in that business is subject to the sales tax.3. When a desktop publisher engages in the services described in subsection 1, the first rendering of the final design delivered to the client is not subject to the sales tax because it is the result of creative services. As an example of the application of this subsection, if a client furnishes information to the desktop publisher on a computer disc and the desktop publisher arranges and designs the material, provides a hard copy to the client for proofing, and makes any necessary corrections after which a final rendering is returned to the client on the original disc, the transaction is not subject to the sales tax.4. If a desktop publisher, in addition to providing the creative services described in subsection 1, also provides reproduction services, the desktop publisher is a retailer of the copies that are sold and the gross receipts derived therefrom are subject to the tax, except that, if a part of the charge for the copies is for services associated with the creation of the first rendering and that portion of the charge is separately stated on the invoice, the portion of the charge that is attributable to services is not subject to the sales tax. As an example of the application of this subsection, if a desktop publisher provides a client with a presentation package for a sales meeting and also offers for sale copies of the package, the cost of the presentation package is not subject to the sales tax because the charge is for the services provided in producing and creating the idea but the charge for providing the copies is subject to the sales tax.5. The sales tax does not apply to any charges for supervision, consultation, research, postage, express, telephone and telegraph messages, transportation and travel expenses, or talent fees, if the charge is stated separately on the invoice or is part of a charge for other services.Nev. Admin. Code § 372.229
Added to NAC by Tax Comm'n, eff. 11-12-93