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The California Board of Equalization delivers sales tax
exemption to graphic artists, photographers

Another case which has long been supported by ASMP has resulted in a win for creators including commercial photographers who work in advertising and publishing fields.

This week in a long awaited victory for the California arts community, the California Board of Equalization voted to clarify the sales tax regulations affecting illustrators, photographers, cartoonists and designers. Heeding the seven-year effort by the Graphic Artists Guild, this vote will benefit graphic artists in four ways:

1. It virtually exempts sales tax on all reproduction rights (including royalties) on the artwork of graphic artists.
2. It exempts from sales tax artwork delivered on computer disk if the disk is returned.
3. It exempts sales tax on print design when the designer buys the printing.
4. It clearly specifies that commercial photographers working in the advertising and publishing fields are considered graphic artists.

ASMP president Dave Harp commended the Graphic Artists Guild for leading the battle to benefit the California creative community and said that ASMP was proud to be part of the effort. "The Graphic Artists Guild has always been one of ASMP’s staunchest allies in the legal arena and we know that we’ll be working together in future whenever a united front is needed."

"This is a another clear victory for us," said Lloyd Dangle, Graphic Artists Guild national president, the initial organizer of the Guild's sales tax effort. "The BOE has recognized that our work is about creating and licensing intellectual property. Finally, they have shifted away from taxing our work as tangible merchandise."

This decision comes nine months after the California Supreme Court found that illustrator Heather Preston was unfairly required to collect sales tax on the licenses of reproduction rights and royalties to her artwork. Regulations 1540, 1541, and 1543 were rewritten in light of the Preston decision.

The Graphic Artists Guild's Northern California Chapter has been pursuing sales tax reform for artists through the California State Legislature and the California Board of Equalization since 1996. This ambitious campaign began in response to punishing and unfair audits on some of its members.

Along with ASMP, Advertising Photographers of America and American Institute of Graphic Artists as well as the Association of American Advertising Agencies, the Motion Picture Association of America, and Editorial Photographers, joined the Guild in this effort. More information at http://norcal.gag.org.