Were calligraphy charges taxable when the customer supplied the paper or other item being lettered?

Plain-English summary

California treated calligraphy and handlettering as artwork. Under section 6006(b), taxable fabrication could consist entirely of labor performed on tangible personal property furnished by the customer.

The agency therefore said calligraphy charges were taxable even when the client supplied the paper or other product being lettered.

The letter identified one exception: tax did not apply to addressing performed for the purpose of mailing. It also asked the calligrapher's client to obtain a seller's permit.

Common questions

Did customer ownership of the paper make the labor nontaxable?

No. The letter treated the calligraphy as taxable fabrication of customer-furnished property.

Was addressing envelopes for mailing taxable?

No. The cited regulation excluded addressing performed for mailing.

Citations and references

• California Revenue and Taxation Code section 6006(b)
• California Sales and Use Tax Regulations 1540(a)(2) and 1541(c)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/430-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/430-0055.pdf

Original ruling text

430.0055

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

MEMBER
First District, Kentfield

450 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 324-3828

BRAD SHERMAN
Second District, Los Angeles
ERNEST J. DRONENBURG, JR
Third District, San Diego
MATTHEW K. FONG
Fourth District, Los Angeles

December 9, 1993

GRAY DAVIS
Controller, Sacramento

BURTON W. OLIVER
Executive Director

Dear X---------------------:

This is in response to your letter of September 21, 1993, which was addressed to Mr. Carl J. Bessent. Calligraphy is an ancient art. Then again the Sales and Use Tax Law, which has been in effect for over 60 years, has a heritage of its own. It has been this agency's consistent interpretation of that law that charges for calligraphy are subject to sales tax. It is our position that the tax applies, even in circumstances where calligraphy is done on paper or other products supplied by the client. Revenue and Taxation Code section 6006(b) provides that the term “sale” includes: “ (b) The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting.” (Emphasis added.) Thus, transactions which involve the furnishing of labor only can be subject to tax under the Sales and Use Tax Law. Our position with respect to calligraphy is reflected in our Regulation 1540, “Advertising Agencies, Commercial Artists and Designers.” Handlettering is regarded as artwork. The regulation provides in paragraph (a) (2) that "artwork" includes "drawings, paintings, designs, lettering and the like." Note that not all charges for calligraphy are taxable. Tax does not apply to charges for addressing for the purpose of mailing. Our Regulation 1541, "Printing and Related Arts," provides in paragraph (c) that "tax does not apply to charges for ... addressing for the purpose of mailing (by hand or by mechanical means) .... " (Emphasis added.) Copies of our Regulations 1540 and 1541 are enclosed for your reference. We would ask that your client obtain a seller's permit from this agency. Very truly yours, Gary J. Jugum Assistant Chief Counsel GJJ:sr Encs. Cc: Mr. Carl J. Bessent – MIC:82