An advertising agency in the state of Virginia recently requested a letter ruling regarding an assessment made by a Department of Taxation audit. Tax was assessed on items originally purchased without tax and then used by the advertising agency to create a web site advertising its client’s services and pricing. Once complete, the design graphics for the web site were delivered to the client on a disk. The Code of Virginia provides an exemption for advertising and states that anyone providing advertising is considered the user of any tangible personal property purchased for the use in the advertisement. (Ruling of the Tax Commissioner, 02-42, April 5, 2002)