Idaho Admin. Code r. 35.01.02.054 - PERSONS ENGAGED IN PRINTING
Sections 63-3612, 63-3613, 63-3616, 63-3621, 63-3622, Idaho Code
01.
Private Printing Plants.
Persons operating private printing plants in conjunction with their principal
business pay sales or use tax on the purchase of equipment and supplies used to
produce display signs, advertising brochures, and other materials for their own
consumption. (3-31-22)
02.
Printing upon Special Order. Persons primarily engaged in the
printing of tangible personal property upon special order for a consideration
may purchase equipment and supplies directly used to produce such property
exempt from sales or use tax. (3-31-22)
a.
The sale of typography, art work, photoengraving, electros, mats, stereotypes,
hand or machine composition, lithographic plates or negatives, electrotypes,
etc., to a person primarily engaged in the printing of tangible personal
property for a consideration, and to be used directly by such person is deemed
essentially sales of service or exempt materials and not taxable.
(3-31-22)
b. When purchasing goods
exempt from tax, the printer provides the seller with a properly completed
exemption certificate. See Rule
128 of these rules.
(3-31-22)
03.
Sales
by Persons Engaged in Printing. Fees charged to ultimate consumers for
printing of tangible personal property upon special order are taxable.
(3-31-22)
a. Printing of tangible personal
property includes imprinting and all processes or operations connected with the
preparation of paper or paper-like substances, the reproduction thereon of
characters or designs and the alteration or modification of such substances by
finishing and binding. (3-31-22)
b.
Upon such final sales, charges for materials, labor and production of
fabrication or typography, author's alterations, art work, photo engravings,
electros, mats, stereotypes, hand or machine composition, lithographic plates
or negatives, electrotypes, etc., and binding and finishing services are
included in the taxable sales price whether the various charges are separately
stated or not. (3-31-22)
c. The
following charges, if separately stated, are not included in the taxable sale
price: (3-31-22)
i. Charges for postage as
part of the printed item; or (3-31-22)
ii. Charges for addressing, stamping,
sealing, inserting or wrapping in connection of a direct mail advertising in
which items of tangible personal property and service are supplied.
(3-31-22)
04.
Advertising Inserts. As used in this rule, advertising inserts
means printed advertising distributed concurrently with, but printed separately
from, a newspaper, magazine, or other publication. (3-31-22)
a. The sale of advertising inserts by a
printer or other supplier to an advertiser for use by the advertiser in the
promotion of its business or products, and not for resale by the advertiser, is
a taxable sale of tangible personal property. If, for any reason, the seller of
the advertising inserts fails to collect sales tax on the sale of the
advertising inserts to the advertiser, the advertiser is subject to use tax on
its use of advertising inserts in Idaho. (3-31-22)
b. When an advertiser contracts for the
distribution of advertising inserts to locations within this state, a taxable
use by the advertiser occurs. The contracted distribution constitutes an
exercise of right or power over the advertising inserts by the advertiser. The
person performing the distribution services may be a publisher, printer,
distributor of a newspaper, magazines, or other publication, or any other
person performing distribution services. (3-31-22)
c. A contract between an advertiser and a
publisher of a newspaper, magazine, or other publication, whereby the publisher
sells advertising space in its publication is not a taxable sale.
(3-31-22)
05.
Labels and Other Printed Matter Sold to Manufacturers. Sales of
labels or name plates, and the printing thereon, to manufacturers, producers,
or wholesale merchants where the purpose of the buyer is to affix the label or
name plate to his own product, or the container thereof will not be taxable.
(3-31-22)
a. Sale of package inserts,
individual folding boxes and setup boxes, and the printing thereon to
manufacturers, or producers, to accompany their own manufactured products, and
to pass to the ultimate consumer upon final sales of the manufactured product
contained or described therein, are presumed to be made for the purpose of
resale. (3-31-22)
b. Sale of
direction sheets, instruction books, or manuals to a manufacturer, producer,
wholesale or retail merchant, to be supplied with his product at no separate
charge, are not taxable. If a separate charge is made for such sheets, books,
manuals, or pamphlets, the manufacturer, etc., is required to collect and remit
sales tax. (3-31-22)
Notes
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No prior version found.