Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 19 - Specific Applications and Examples › Part 31 - "P" › Section 710:65-19-265 - Printers

Current through Vol. 41, No. 20, July 1, 2024
(a)
Sales of
				  printed matter to consumers.
Gross receipts accruing from the sales of
				  printed matter of all kinds are subject to the sales tax. Sales to consumers of
				  printed matter such as catalogs, books, letterheads, bills, invoice forms,
				  envelopes, folders, advertising circulars, T-shirts, caps, clothing and the
				  like by printers or others engaged in selling printed matter are subject to the
				  sales tax. A printer may not deduct from the selling price of such tangible
				  personal property charges for the labor or service of performing the printing
				  even though such labor or service charges may be billed to the customer
				  separately from the charge for the stock. Such labor or service is embodied in
				  and becomes a part of the tangible personal property sold. The service of
				  printing on stock provided by the customer is also subject to sales
				  tax.
(b)
Sales of services to
				  non-manufacturers.
If sold to a non-manufacturer, the service of
				  typesetting, color separation, design, art, and camera work invoiced by a
				  printer to a customer is subject to sales tax, even if separately stated on the
				  invoice.
(c)
Lease of
				  equipment to non-manufacturers.
The lease of typesetting, printing,
				  duplicating, and miscellaneous equipment to non-manufacturers or persons not
				  regularly engaged in reselling the same is subject to sales tax.
(d)
Sales of printed U. S. Post Office
				  cards and envelopes.
Where printers purchase from the United States Post
				  Office stamped cards and envelopes and print thereon various legends for
				  customers, the printers must collect, report and remit sales tax measured by
				  their gross proceeds of sales of the printed cards or envelopes to their
				  customers. Such cards and envelopes constitute tangible personal property and,
				  unless the cards and envelopes are to be resold by such customers in the
				  ordinary course of their business, the sales by the printers are subject to
				  sales tax. Such printers will not be required to collect sales tax on the
				  amount of the postage where stated separately in billing to
				  customers.
(e)
Sales of
				  services to another printer.
No sales tax liability arises from the
				  service of printing or from the service of typesetting performed by the printer
				  for another printer where there is no transfer of ownership of tangible
				  personal property from the printer to his customer.
(f)
Sales of materials and services to
				  be used in manufacturing.
Sales of materials, supplies and services to
				  printers holding a current Sales/Manufacturers Permit, to be used in a
				  manufacturing operation, are exempt from sales and use tax in the same manner
				  as sales to other manufacturers. [
See:
710:65-13-150.1
				  ]
(g)
Newspaper advertising
				  supplements or circulars.
Newspaper advertising supplements or circulars
				  inserted in newspapers usually fall in the following categories:
(1) A buyer enters into a contract with a
				  printer for the printing of advertising circulars, catalogs, etc., and directs
				  the printer to deliver the printed material to a newspaper or several
				  newspapers, or directs that they be delivered to another location, sometimes
				  the buyer's place of business. The buyer then enters into a second contract
				  with the newspaper for distribution of the inserts. That portion of advertising
				  supplements or inserts retained by the buyer for distribution to buyer's
				  customers, that do not become part of newspapers manufactured for sale, will be
				  subject to sales or use tax. Those advertising supplements or inserts that are
				  delivered to the purchasers or newspaper companies to be inserted into and
				  become part of the newspaper are not sales or use taxable to the
				  buyer.
(2) Newspaper advertising
				  supplements and inserts which are inserted into newspapers and sold as part and
				  parcel of the newspaper are not subject to tax such as:
(A) Printed by the publishers of the
				  newspaper and inserted into and sold as part and parcel of the newspaper
				  published by such publishers; or
(B) Printed by another printer for the
				  newspaper publisher and paid for by the newspaper publisher for insertion into
				  and sold as part and parcel of the newspaper.