DRS: Ruling 89-128, Advertising

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

Ruling 89-128

Advertising


The total gross receipts for advertising services related to media advertising, inclusive of placement fees and development charges, are not subject to sales and use tax pursuant to section 12-407(2)(i)(W) of the Connecticut General Statutes, as amended by Public Act No. 89-251. The Public Act does not distinguish between the development of ideas or concepts and the development of layouts or mechanicals. The advertising agency is the consumer of all tangible personal property, e.g., graphic designs, artwork, mechanicals, that is purchased for incorporation into media advertising and is liable for payment of the sales or use tax on said purchases.

TIMOTHY F. BANNON
COMMISSIONER

September 28, 1989