North Carolina includes creative design charges as taxable.

A taxpayer sold trade booths, displays, and printed material and also performed creative services for clients. The department ruled that taxpayer’s charges for creative services and design labor constituted part of the sales price of the tangible personal property sold, even if separately stated. Therefore, the total sales price is subject to tax. (Secretary of Revenue Decision No 2003-262, North Carolina Department of Revenue, October 9, 2003)

Posted on April 15, 2004