California sales and use tax amendment affects publishers.

A state regulation has recently been amended for clarification purposes regarding publishing. Regulation 1543 states that any transfer of copy or a manuscript, cartoon and/or comic strip from an author to a publisher explicitly for publication purposes is a nontaxable activity. The transfer of the original manuscript or copy, whether in tangible or machine-readable form is incidental and the author is to be considered the consumer of the property. (Regulation 1543, California State Board of Equalization, effective September 18, 2002)

Posted on December 15, 2002