Were charges for hand-lettering names and dates on customer-furnished certificates taxable?
Apply this to your situation
This page answers the general question as of 1975. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
A business hand-lettered names and dates on customer-furnished wedding, birth, achievement, and similar certificates or awards. It asked whether those charges were subject to sales tax.
California said yes. The applicable regulation taxed charges for artwork, and the letter treated lettering as an art form.
The letter compared the activity to an engraver inscribing names and dates on new trophies and awards, which it also treated as taxable. It acknowledged that some earlier opinions had reached a different result but said the Board's position had been firm since at least 1968.
Common questions
Did customer ownership of the certificate make the lettering nontaxable?
No. The conclusion expressly concerned lettering on documents furnished by customers.
Did the letter follow the older 1964 advice mentioned by the requester?
No. It said earlier nontaxable opinions no longer reflected the Board's established position.
Citations and references
- California Sales and Use Tax Regulation 1540(a)(2)(A)
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/430-0146.pdf
Original ruling text
430.0146
STATE OF CALIFORNIA
STATE BOARD OF EQUALIZATION
(916) 445-2641
September 16, 1975
Mr. I--- M. H--P--- D--- S--XXXX “---” ---, Suite X
---, CA XXXXX
Dear Mr. H---:
SR -- XX XXXXXX
This is in response to your letter of August 18, 1975. You have sought our opinion as to whether a certain portion of your business is or is not subject to the sales tax. The portion in question consists of hand lettering names and dates on documents provided to you by your customers. These documents are generally certificates or awards such as wedding or birth certificates, certificates awarded for achievement, etc. They are similar in nature to trophies awarded, and the work on them similar to engraver’s handwork in inscribing the names and dates thereon. You state that a ruling received in 1964 by a firm by which you were then employed excluded tax on these items. Recently you have been advised by our district office that work of this type is taxable. We are of the opinion that tax applies to charges for hand lettering. Our Regulation 1540, “Advertising Agencies, Commercial Artists and Designers,” provides, in paragraph (a)(2)(A), that tax applies to charges for artwork. Lettering is regarded as an art form. It has been our position since at least 1968 that inscribing names of high school graduates on diplomas constitutes a taxable sale. It appears that some opinions were issued in earlier years to the effect that charges for hand lettering were not subject to tax. Our position has been firm, however, since at least 1968 that lettering constitutes artwork and that charges for hand lettering are subject to the sales tax. We note that tax would likewise apply to charges made by an engraver for engraving names and dates on new trophies and awards. Very truly yours,
Glenn L. Rigby
Tax Counsel
GLR:GJJ:AT
What does the law say today, for your facts?
This ruling is from 1975. Ezel checks current California tax law against your situation and cites the authority it relies on.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace