Rule 560-12-2-.02 - Advertising(1) Advertising Agencies. The tax does not apply to charges for professional services made by an advertising agency for preparing and placing advertising in media such as newspapers, magazines, radio, television, billboards, etc.(2) The tax applies to purchases by an advertising agency of tangible personal property to be used or consumed in preparing and placing advertising in such media. For example, the tax applies to ink, paper, paint, office supplies, art work purchased from independent artists, engraver's charges for metal plates, electrotyper's charges for electrotypes or matrices, tape recordings, television films and recordings, billboard posters, etc.(3) When an agency goes beyond the rendition of professional services and sells tangible personal property, it must register as a dealer in order to collect and remit the tax on the sale of such property. Registered dealers may purchase tangible personal property for resale by furnishing the seller with a Certificate of Exemption.(4) Property purchased for resale must be billed to the person having the right of possession of such property, the tax collected thereon and remitted to the State Revenue Commissioner.(5) Charges for Advertising. The tax does not apply to charges for advertising in media such as newspapers, magazines, radio, television and billboards. The tax applies to purchases of tangible personal property for use or consumption in preparing, publishing, broadcasting or displaying advertising matter, unless resold and the sales tax thereon remitted to the State Revenue Commissioner.(6) Persons engaged in the business of painting signs or applying posters on a building, store front or other real property shall pay the tax on all tangible personal property purchased for use and consumption in preparing, maintaining, displaying and servicing such signs.(7) Commercial Advertising. The tax applies to all sales at retail of tangible personal property commonly known as commercial advertising, including but not limited to catalogs, calendars, handbills, novelties, etc.(8) Premiums and Gifts. The tax applies to purchases of tangible personal property to be given away by persons in advertising -their business or products, or given away as premiums, door prizes, or for any other reasons.Ga. Comp. R. & Regs. R. 560-12-2-.02
Ga. L. 1937-38, Extra Sess., pp. 77, et seq., as amended; Ga. Code Ann., Secs. 92-8405, 8406, 8409, 8427; Ga. L. 1951, pp. 360, 385; Ga. Code Ann., Sec. 92-3438a.
Original Rule was filed on June 30, 1965.