Form Fyi-210 - Information For The Printing Industry (Page 3 of 5) in pdf

remit their reports and taxes on a monthly basis, but if the total tax due averages less than $200 monthly, the

business may ask to report on a quarterly or semiannual basis. Those transactions which are deductible must still

be reported, even if all transactions are deductible and no tax is due.

EXAMPLES

1. X, a printing company, purchases paper and ink from Y, an office supply warehouse. X issues Y a Type 1

NTTC for these purchases. Y can take a deduction from its gross receipts because an appropriate NTTC was

issued by X.

2. Z, a printing company, subcontracts part of a large printing job to Y, another printing company. If Z separately

states the value of Y's services on Z's invoice to its customer and Z's sale to its customer is subject to the gross

receipts tax, Z may issue a Type 5 NTTC to Y for the purchase of those printing services.

3. YY, a printing company, purchases labels from a label supply company and issues a Type 2 NTTC. The

issuance of this certificate is correct as long as YY resells the labels in the ordinary course of its business. If YY

uses the labels instead of reselling them, compensating tax is due.

4. The Economic Development Department, a state agency, contracts with Y to print 100 manuals used in one of

the department's programs. The Economic Development Dept. issues Y a Type 9 NTTC. This issuance of a Type

9 NTTC is correct. The transaction is for the sale of tangible property.

5. X, a printing company, hires Y, a local photo studio, to develop some film. X offers to issue Y a Type 5 NTTC

and Y refuses. Y is correct. This is not a service for resale in the ordinary course of X's business. There is no

certificate available; this is a taxable transaction.

6. B, a small weekly publication, contracts with C, to print its newspaper because B does not have the facilities to

complete the work. The receipts of C from this transaction are deductible under 7-9-64, which states in part:

Receipts from selling newspapers... may be deducted from gross receipts.

C manufactures the newspaper for B. No NTTC is required but documentation that the transaction is the sale of a

newspaper must support the deduction. It does not matter whether the publisher in turn sells the newspaper or

distributes it free of charge.

7. S, an envelope manufacturer, has contracted with T, a company which specializes in envelope printing, to print

a logo on some envelopes for one of their larger clients. S provides T with the envelopes and a copy of the logo.

T may accept a Type 13 NTTC for the purchase of the services because they were performed directly on a

manufactured product.

Form Fyi-210 - Information For The Printing Industry Page 3