Which California calligraphy charges were taxable, and when did the mailing-address exception apply?

Plain-English summary

California tax counsel treated calligraphy as hand lettering and therefore as artwork. Charges for calligraphy were generally taxable, including one-of-a-kind art, signs, camera-ready copy, and lettering added to certificates, table cards, or name tags already owned by the client.

The exception was addressing for mailing. It was nontaxable whether performed by hand, typewriter, computer, or calligraphy machine.

The purpose of the address controlled. An inside address on a letter was taxable when it was not used for mailing. If that inside address showed through a window envelope and served as the mailing address, the exception applied.

What this means for you

Calligraphers and lettering businesses

The artistic or one-of-a-kind nature of the work did not create an exemption. Most transferred lettering was treated as taxable artwork.

Mailing-service providers

Document that the lettering functions as the actual mailing address. The method used to create it did not matter in this opinion.

Accountants and tax professionals

Separate mailing addresses from decorative or internal addresses and from lettering placed on customer-owned objects.

Common questions

Q: Were custom calligraphy pieces taxable?

A: Yes. The letter treated one-of-a-kind art, signs, and camera-ready copy as taxable.

Q: Was hand-addressing envelopes taxable?

A: No, when the addressing was used for mailing.

Q: Did machine or computer addressing receive the same treatment?

A: Yes. The mailing exception applied regardless of whether the address was made by hand, typewriter, computer, or calligraphy machine.

Q: What about an address printed inside a letter?

A: It was taxable unless it showed through a window envelope and functioned as the mailing address.

Citations and references

• California Sales and Use Tax Regulation 1504
• California Sales and Use Tax Regulation 1540

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 100.0054
• Original supporting opinion: 100.0054 PDF

Original ruling text

100.0054

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 445-3723

July 1, 1991

Ms. A--- B--P--- I--XXX --- Drive
--- ---, CA XXXXX
SR -- XX-XXXXXX
Dear Ms. B---:
Your letter of May 10, 1991, addressed to Ms. Sandy Shaver, was referred to this office for reply. Your letter was postmarked May 28, 1991, and was received in this office on June 28, 1991. You have raised a number of questions with respect to application of the sales tax to charges for calligraphy. Under the Sales and Use Tax Law, calligraphy is regarded as “handlettering,” and thus as “artwork.” See our Regulation 1540, “Advertising Agencies, Commercial Artists and Designers,” copy enclosed for your reference. Charges for calligraphy are generally subject to tax. As you note, one-of-a-kind art pieces created for the client are taxable. Signs are taxable, camera-ready copy is taxable. Addressing for mailing is nontaxable. See our Regulation 1504, “Mailing Lists and Services.” Addressing for mailing is nontaxable whether done by hand by a calligrapher, or by a typewriter, or by a computer, or by a calligraphy machine. The reason for the exclusion from tax is largely historical. Hand addressing for mailing was considered to be a service. The concept was extended to machine addressing for mailing. The concept does not extend to addressing not done for mailing purposes. Thus, charges for lettering or printing an inside address on a letter are taxable, unless the item addressed is mailed in a window envelope, and the inside address is thus used for mailing purposes. Lettering on objects already purchased by the client, such as certificates, table cards, and name tags are taxable.

Ms. A--- B---

-2-

July 1, 1991
100.0054

Generally, the concept is that calligraphy is art and art is taxable. The addressing for mailing exception is applicable to all forms of lettering, printing and imprinting. Very truly yours,

Gary J. Jugum
Assistant Chief Counsel

GJJ:sr
cc:

Ms. Sandy Shaver
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