Okla. Admin. Code § 710:65-19-265

Current through Vol. 41, No. 24, September 3, 2024

Section 710:65-19-265 - Printers

(a)Sales of printed matter to consumers. Gross receipts accruing from the sales of printed matter of all kinds are subject to the sales tax. Sales to consumers of printed matter such as catalogs, books, letterheads, bills, invoice forms, envelopes, folders, advertising circulars, T-shirts, caps, clothing and the like by printers or others engaged in selling printed matter are subject to the sales tax. A printer may not deduct from the selling price of such tangible personal property charges for the labor or service of performing the printing even though such labor or service charges may be billed to the customer separately from the charge for the stock. Such labor or service is embodied in and becomes a part of the tangible personal property sold. The service of printing on stock provided by the customer is also subject to sales tax.

(b)Sales of services to non-manufacturers. If sold to a non-manufacturer, the service of typesetting, color separation, design, art, and camera work invoiced by a printer to a customer is subject to sales tax, even if separately stated on the invoice.

(c)Lease of equipment to non-manufacturers. The lease of typesetting, printing, duplicating, and miscellaneous equipment to non-manufacturers or persons not regularly engaged in reselling the same is subject to sales tax.

(d)Sales of printed U. S. Post Office cards and envelopes. Where printers purchase from the United States Post Office stamped cards and envelopes and print thereon various legends for customers, the printers must collect, report and remit sales tax measured by their gross proceeds of sales of the printed cards or envelopes to their customers. Such cards and envelopes constitute tangible personal property and, unless the cards and envelopes are to be resold by such customers in the ordinary course of their business, the sales by the printers are subject to sales tax. Such printers will not be required to collect sales tax on the amount of the postage where stated separately in billing to customers.

(e)Sales of services to another printer. No sales tax liability arises from the service of printing or from the service of typesetting performed by the printer for another printer where there is no transfer of ownership of tangible personal property from the printer to his customer.

(f)Sales of materials and services to be used in manufacturing. Sales of materials, supplies and services to printers holding a current Sales/Manufacturers Permit, to be used in a manufacturing operation, are exempt from sales and use tax in the same manner as sales to other manufacturers. [See:710:65-13-150.1 ]

(g)Newspaper advertising supplements or circulars. Newspaper advertising supplements or circulars inserted in newspapers usually fall in the following categories:

(1) A buyer enters into a contract with a printer for the printing of advertising circulars, catalogs, etc., and directs the printer to deliver the printed material to a newspaper or several newspapers, or directs that they be delivered to another location, sometimes the buyer's place of business. The buyer then enters into a second contract with the newspaper for distribution of the inserts. That portion of advertising supplements or inserts retained by the buyer for distribution to buyer's customers, that do not become part of newspapers manufactured for sale, will be subject to sales or use tax. Those advertising supplements or inserts that are delivered to the purchasers or newspaper companies to be inserted into and become part of the newspaper are not sales or use taxable to the buyer.

(2) Newspaper advertising supplements and inserts which are inserted into newspapers and sold as part and parcel of the newspaper are not subject to tax such as:

(A) Printed by the publishers of the newspaper and inserted into and sold as part and parcel of the newspaper published by such publishers; or

(B) Printed by another printer for the newspaper publisher and paid for by the newspaper publisher for insertion into and sold as part and parcel of the newspaper.

(h)Special nexus provision. No vendor, not otherwise required to collect and remit sales tax or use tax, shall be required to register and collect either tax simply because of having entered into an agreement with a commercial printer in this state to have printing or printing-related activities, or both, done in this state, even though the vendor:

(1) Owns tangible or intangible personal property located on the premises of the commercial printer in this state;

(2) Periodically has employees at the Oklahoma premises of the commercial printer; or,

(3) Has the printer engage in printing-related activities, including distribution of the printed material in this state. [See: 68 O.S. § 1376 ]

Okla. Admin. Code § 710:65-19-265

Amended at 14 Ok Reg 2711, eff 6-26-97; Amended at 17 Ok Reg 2677, eff 6-25-00; Amended at 19 Ok Reg 1859, eff 6-13-02