Nev. Admin. Code § 372.229 — 372.229

NAC 372.229    Desktop publishers. ( NRS
360.090 , 372.725 )
1.  As used in this section, the term
“desktop publisher” means a person who is in the business of producing original
written or graphic material, or both, or refining, arranging, designing or
otherwise modifying, editing, writing, rewriting or redesigning material, or
any combination thereof.
2.  Purchases of tangible personal property
by a desktop publisher are subject to the sales tax if the property is acquired
for use in the operation of the business. As an example of the application of
this section, the purchase of a laser printer by a desktop publisher for use in
that business is subject to the sales tax.
3.  When a desktop publisher engages in the
services described in subsection 1, the first rendering of the final design
delivered to the client is not subject to the sales tax because it is the
result of creative services. As an example of the application of this
subsection, if a client furnishes information to the desktop publisher on a
computer disc and the desktop publisher arranges and designs the material,
provides a hard copy to the client for proofing, and makes any necessary
corrections after which a final rendering is returned to the client on the
original disc, the transaction is not subject to the sales tax.
4.  If a desktop publisher, in addition to
providing the creative services described in subsection 1, also provides
reproduction services, the desktop publisher is a retailer of the copies that
are sold and the gross receipts derived therefrom are subject to the tax,
except that, if a part of the charge for the copies is for services associated
with the creation of the first rendering and that portion of the charge is
separately stated on the invoice, the portion of the charge that is
attributable to services is not subject to the sales tax. As an example of the
application of this subsection, if a desktop publisher provides a client with a
presentation package for a sales meeting and also offers for sale copies of the
package, the cost of the presentation package is not subject to the sales tax
because the charge is for the services provided in producing and creating the
idea but the charge for providing the copies is subject to the sales tax.
5.  The sales tax does not apply to any
charges for supervision, consultation, research, postage, express, telephone
and telegraph messages, transportation and travel expenses, or talent fees, if
the charge is stated separately on the invoice or is part of a charge for other
services.
(Added to NAC by Tax Comm’n, eff. 11-12-93)