The agency may qualify for certain manufacturing exemptions. C is subject to tax. The agency should issue the printer a resale certificate in lieu of tax. The expenses incurred by the salesperson are a cost of the finished art and are taxable to the client. The agency is not reselling the expenses, so it must pay tax on the costs incurred.
Art department draws designs of booth for builders.
Agency sends art graphics materials showing planned booth to customer for his approval. Finished Artwork After customer approval, agency contracts with outside carpentry firm to build the booth as designed. Construction of booth includes outside services of carpenter, electrician, painter, etc. Delivery Agency ships booth to site of trade show. Agency Expenses Agency's art department personnel travel to trade show to set up and decorate booth on site.