Are an art advisor's consulting and support services taxable in New York, and when do they become taxable interior decorating and designing services?

Plain-English summary

The Association of Professional Art Advisors asked whether the services its members provide — advising art collectors on the purchase, curating, moving, and installation of works of art — are subject to sales tax as interior decorating and designing services under Tax Law § 1105(c)(7). The Association presented eight hypothetical engagements (labeled A through H) ranging from pure investment advice to full-service collection management, framing, and installation.

The Department worked through each hypothetical and drew one consistent line:

• Pure consulting is not taxable. When an art advisor only advises a client on whether to buy particular works for their investment potential — or advises on proper framing and restoration without arranging or supervising the actual work — that is a consulting service, which is not one of the services enumerated in § 1105(c). Those receipts are not subject to sales tax.
• Selecting framing plus supervising installation turns the whole engagement into taxable interior design. If the advisor's work results in the advisor selecting framing for the artwork and selecting, supervising, or arranging the location and installation of the artwork, the advisor is performing interior decorating and designing services, and the advisor's total receipts from that client — including the consulting charges bundled in — become taxable under § 1105(c)(7).
• Curatorial services stand or fall on their own. Photographing, cataloging, revaluing the collection for insurance, and arranging for signage, framers, and conservators are not interior design. But: (a) transferring photographs or a catalog to the client is a taxable sale of tangible personal property under § 1105(a); and (b) if the advisor buys signs, labels, framing, or restoration for resale to the client, the advisor must collect tax on those charges under §§ 1105(a) and 1105(c)(3). When curatorial work is bundled with taxable interior-design activity, the whole charge is taxable under § 1105(c)(7).
• Moving services alone are not taxable — but arranging installers is. Inventorying the collection, identifying items needing special packing, and supervising packing and moving are nontaxable moving services. But contracting on the client's behalf for professional art installers and supervising reinstallation at the new location is interior design, so the entire relocation charge (including the moving) becomes taxable under § 1105(c)(7).
• Appraisal and deaccessioning advice alone are not taxable, but if combined with supervising framing and installation of the remaining collection, the total charge (appraisal included) is taxable under § 1105(c)(7).

What this means for you

The tax hinges on whether you "install," not on what you charge for

New York does not tax consulting. An art advisor, decorator, or collection manager who only gives advice — even highly specialized, expensive advice about what to buy — is providing a nontaxable service. The taxable trigger under § 1105(c)(7) is the design work: selecting framing and directing where and how the art is placed and installed.

Bundling nontaxable advice with taxable design taxes the whole bill

This opinion is a clear "all-or-nothing" warning: once an engagement includes taxable interior-design activity, the advisor's total charge to that client is taxed — the consulting, curatorial, appraisal, moving, signage, and cataloguing pieces do not stay tax-free just because they would be nontaxable if sold alone. If you want the advice portion to remain nontaxable, it generally needs to be a genuinely separate engagement that does not include selecting framing or supervising installation.

Watch two side traps: transferred tangible items and resale purchases

Even a pure "curatorial" engagement can generate tax. Handing the client photographs or a printed catalog is a sale of tangible personal property. And buying framing, signs, or restoration services and reselling them to the client makes you the party responsible for collecting the tax.

Common questions

Q: Is advising a client on which artworks to buy for investment taxable in New York?
A: No. Standalone investment/acquisition consulting is not an enumerated service under § 1105(c), so it is not subject to sales tax.

Q: What makes an art advisor's fee taxable?
A: Performing interior decorating and designing — in particular, selecting framing and selecting, supervising, or arranging the location and installation of the artwork — is taxable under § 1105(c)(7).

Q: If I give nontaxable advice but also supervise the installation, is only the installation taxed?
A: No. Once the engagement includes taxable design/installation work, your total charge to that client, including the consulting portion, is taxable.

Q: Are photographing and cataloging a collection taxable?
A: The service itself is not interior design, but if you transfer the photographs or catalog to the client, that transfer is a taxable sale of tangible personal property under § 1105(a).

Citations and references

Statutes and regulations:

• Tax Law § 1105(c)(7) — tax on interior decorating and designing services, "by whomsoever performed," with a carve-out for licensed architecture/engineering
• Tax Law § 1105(a) — tax on receipts from every retail sale of tangible personal property
• Tax Law § 1105(c)(3) — tax on maintaining, servicing or repairing tangible personal property
• Tax Law § 1101(b)(4) — definition of "retail sale," including the resale exclusion and the component/transfer rules for § 1105(c)(3) and (c)(7) services

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1991.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a91_47s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-91 (47)S
Sales Tax
July 5, 1991

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S910104A

On January 4, 1991 a Petition for Advisory Opinion was received from The Association of
Professional Art Advisors, P.O. Box 2485, New York, New York 10163.
The issue raised by Petitioner, The Association of Professional Art Advisors, is whether art
advisory services and ancillary support services rendered by professional art advisors/consultants are
subject to the tax imposed under the provisions of Section 1105(c)(7) of the Tax Law.
A professional art advisor is a person who is qualified by education and experience to provide
professional guidance to the collector on the purchase, installation, placement and maintenance of
works of art.
The professional experience and educational background of a professional art advisor
normally includes a thorough knowledge of art history, on the job experience with a museum, gallery
or other arts organization that teaches correct curatorial skills and art handling procedures, and
knowledge of the art market. The following hypotheticals represent the various services which a
professional art advisor may provide:
A.
An art advisor is retained to advise a firm on the purchase of important contemporary
paintings on canvas, unique paintings on paper, original signed, limited edition prints, and
photographs. Most of the artists and photographers whose works are acquired are well known in the
art world, and many are represented in museum collections. The primary purpose of these services
is to advise the client on the acquisition of an art collection with investment potential, one which will
distinguish the client for its commitment to a quality art acquisition program, enhance its prestige
and promote greater understanding of art and its enjoyment for employees, visitors and clients. For
these services the client pays a percentage of the art acquisition budget.
B.
For the firm described in paragraph A, the art advisor also provides curatorial
services. Curatorial services include photographing and cataloging the collection, periodically
reassessing the value of the collection for insurance purposes, arranging for signage and labels for
the artworks, selecting framers who are attentive to archival techniques, and arranging for
conservators for restoration of the collection when necessary. Curatorial services are billed at a per
diem rate.
C.
In connection with the relocation of a client's business, the art advisor provides the
following ancillary or support services: inventory of the collection, identification of art work which
requires special packing, supervision of packing and moving, and supervision of re-installation at
the new location. The latter services require the advisor to contract on the client's behalf for
professional art installers to carry out the installation. Although the client retains an interior

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decorator to accomplish its design objectives, the client relies on the services of the art advisor to
advise on the placement and location of the art collection. Criteria used by the advisor to site the
works include: (1) the importance of the work; (2) theme; (3) placement of works by the same artist
in one location in order to educate visitors or employees about an artist's style and evolution; (4)
exposure of employees to different art works in the collection in furtherance of their art education.
D.
An art advisor advises private collectors in New York City on art acquisitions for
their collections; advice is provided with respect to specific artists and artworks regarding quality
and investment potential. For these services, the art advisor charges either a per diem fee, or a
percentage of the art budget. The advisor may also advise these clients on proper framing and
restoration, when needed, and occasionally supervises the installation of artwork in the home. The
latter ancillary services are billed at a per diem rate.
E.
For a corporate client, the art advisor recommends the purchase of works by emerging
younger artists with investment potential. For this advice, the art advisor is paid a fee based on a
percentage of the work acquired. No other curatorial, installation, or other related services are
provided for this client.
F.
An art advisor is retained to provide collection management and consultation services
including location of artwork based on themes for a corporate art collection program. The collection
includes prints, wall sculpture, textiles, photography and painting. Ancillary services include
providing signage.
G.
An art advisor is retained to advise a firm on the acquisition of over 100 works of art
of various mediums ranging in price from $800 to $75,000 in connection with relocation to new
offices and to provide advisory and supervisory services in connection with the reframing of the
existing collection and the installation of the entire collection of 250 artworks at the new location.
Signage is provided for new works. The art advisor also provides services in connection with the
preparation of a catalogue on the collection.
H.
An art advisor is retained to provide appraisal services and to review an existing
collection of 300 art works with a view toward recommending deaccessioning one third of the
collection. The art advisor provides supervisory services in connection with framing and installation
of the remaining collection at a new location.
A brochure prepared by Petitioner sets forth guidelines and standards for its members. The
brochure states, in part:
What is an art advisor?
An art advisor is a person who is qualified to provide professional guidance to the collector
on the purchase, installation, placement and maintenance of works of art. The art advisor is
prepared to assist in the arrangement of tours, lectures and other art-related programs. Where

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required, the art advisor is also prepared to work with architects and/or designers to integrate
the art program with design objectives. . . .
The U.S. Department of Labor's Dictionary of Occupational Titles, Fourth Edition, 1977
states in part:
142.051-014 INTERIOR DESIGNER (profess. & Kin.)
Plans, designs, and furnishes interior environments of residential, commercial, and industrial
buildings: Confers with client to determine architectural preferences, purpose and function
of environment, budget, types of construction, equipment to be installed and other factors
which affect planning interior environments. Integrates findings with knowledge of interior
design and formulates environmental plan to be practical, esthesic, and conducive to intended
purposes, such as raising productivity, selling merchandise, or improving life style of
occupants. Advises client on interior design factors, such as space planing, layout and
utilization of furnishings and equipment, color schemes and color coordination. Renders
design ideas in form of paste ups, drawings, or illustrations, estimates material requirements
and costs, and presents design to client for approval. Selects or designs and purchases
furnishings, art works, and accessories. Subcontracts fabrication, installation, and
arrangement of carpeting, fixtures, accessories, draperies, paint and wall coverings, art work,
furniture, and related items. May plan and design interior environments for boats, planes,
buses, trains and other enclosed spaces. May specialize in particular field, style, or phase of
interior design. May specialize in decorative aspects of interior design and be designated
INTERIOR DECORATOR (profess. & kin.).
Section 1105(c)(7) of the Tax Law imposes sales tax on:
Interior decorating and designing services, (whether or not in
conjunction with the sale of tangible personal property) by
whomsoever performed, including interior decorators and designers,
architects or engineers; notwithstanding the foregoing, such services
shall not include services which consist of the practice of architecture,
as defined in section seventy-three hundred one of the education law,
or the practices of engineering, as defined in section seventy-two
hundred one of the education law, if the services are performed by an
architect or engineer having a license or permit under the education
law.
Section 1101(b) of the Tax Law states, in part:
When used in this article for the purposes of the taxes imposed by
subdivisions. . .(c). . .of section eleven hundred five and by section
eleven hundred ten, the following terms shall mean:

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(4)
Retail sale. (i) A sale of tangible personal property to any
person for any purpose, other than (A) for resale as such or as a
physical component part of tangible personal property, or (B) for use
by that person in performing the services subject to tax under
paragraphs. . .(3). . .(7). . .of subdivision (c) of section eleven hundred
five where the property so sold becomes a physical component part
of the property upon which the services are performed or where the
property so sold is later actually transferred to the purchaser of the
service in conjunction with the performance of the service subject to
tax. . . .
Section 1105(a) of the Tax Law, imposes tax on:
"The receipts from every retail sale of tangible personal property,
except as otherwise provided in this article."
Section 1105(c) of the Tax Law imposes tax on:
The receipts from every sale, except for resale, of the following
services:
(3). . .maintaining, servicing or repairing tangible personal property.
. .not held for sale in the regular course of business,. . .whether or not
any tangible personal property is transferred in conjunction therewith.
..
Along with the tax imposed upon the receipts from every sale, except for resale, of the
services of maintaining, servicing or repairing tangible personal property and the services of interior
decorating and designing as imposed under parts (3) and (7), respectively, Section 1105(c) of the Tax
Law also imposes tax upon the receipts from every sale, except for resale, of certain other
enumerated services.
The application of Sections 1105(a), 1105(c)(3) and 1105(c)(7) of the Tax Law to the
professional art advisor's services as presented in Petitioner's hypotheticals "A" through "H", above,
are hereinafter set forth. In determining whether the services rendered constitute interior decorating
and design services, the particular services rendered are considered in light of the definition of
interior designer set forth in the U.S. Department of Labor's definition of interior designer and
Petitioner's definition of an art advisor.
A.
Consulting services, in general, are not one of the services specifically enumerated
under Section 1105(c) of the Tax Law. When an art advisor's services only involve consulting with
a client for the sole purpose of advising the client whether or not to purchase certain works of art
from an investment potential prospective, such services will not be considered as the performance

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of an interior decorating and designing service nor as the performance of any other service
enumerated under Section 1105(c) of the Tax Law. Accordingly, receipts from the sales of such
consulting services will not be subject to New York State or local sales tax.
However, if the art advisor's consultation with the client results in the art advisor selecting
framing for the artwork and electing or supervising the location and installation of the artwork, the
art advisor will be considered to be performing interior decorating and designing services, and the
art advisor's total receipts from charges to the client, including charges for the consulting services,
will be subject to the tax imposed under Section 1105(c)(7) of the Tax Law.
It is noted that if the art advisor were to sell works of art to the client as part of the curatorial
services, the receipts for the cost of the artwork as well as the curatorial services in connection with
the artwork would be subject to sales tax.
B.
The art advisor's performance of the curatorial services of photographing and
cataloging the client's art collection, reassessing the value of the collection for insurance purposes,
arranging for signage and labels for the artwork, selecting framers who are attentive to archival
techniques and arranging for conservators for restoration of the collection when necessary do not
constitute the performance of interior decorating and designing services, whether performed
individually or collectively.
However, receipts from charges to clients for photographing and cataloging the client's art
collection will be subject to the tax imposed under Section 1105(a) of the Tax Law where such
photographs and cataloging are transferred to the client, as such transaction will be considered a sale
of tangible personal property to the client.
The services of reassessing the value of the collection for insurance purposes, arranging for
signage and labels for the artworks, selecting framers who are attentive to archival techniques and
arranging for conservators for restoration of the collection when necessary are not among the
services enumerated under Section 1105(c) of the Tax Law and the receipts from charges for
arranging for such services will not be subject to New York State and local sales tax. However, in
any instance where Petitioner purchases the signs and labels, the framing services and the restoration
services for resale to the client, Petitioner will be liable for collecting sales tax on the charges to the
client under the provisions of Sections 1105(a) and 1105(c)(3) of the Tax Law, respectively.
It is noted that when any of the curatorial services are performed along with activities which
are considered to fall within interior decorating and designing services as discussed in "A", above,
the art advisor's total receipts from charges to the client, including receipts from curatorial services,
will be subject to the tax imposed under Section 1105(c)(7) of the Tax Law.
C.
The ancillary or support services of inventorying the client's art collection, identifying
artwork which requires special packing and supervising the packing and moving of the collection,
when performed along with relocating the client's art collection, without the performance of any

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other services will be considered as moving services and the receipts from charges to the client for
such services will not be subject to New York State or local sales tax.
However, the art advisor's contracting on behalf of the client for professional art installers
and the supervision of the reinstallation of the client's art collection at the new location will be
considered as interior decorating and designing services. Accordingly the receipts from the total
charges to the client for such services, including the charges for the moving services, will be subject
to the tax imposed under Section 1105(c)(7) of the Tax Law.
D.
When the art advisor advises a private collector within New York City on art
acquisitions with respect to specific artists and artworks regarding quality and investment potential,
the art advisor is considered to be performing a consulting service. Where the art advisor advises the
client on the proper framing of an artwork and on restoration procedure for such artwork, without
performing or arranging for the actual framing or restoration service, the art advisor is also
considered to be performing a consulting service. The receipts from charges billed to the client for
such consulting services will not be subject to New York State or local tax.
However, when the art advisor supervises the installation of the artwork within the client's
home, the art advisor will be considered to be performing interior decorating and designing services
and the total charges to the client, including charges for the previously mentioned consulting services
will be subject to the tax imposed under Section 1105(c)(7) of the Tax Law.
E.
When the art advisor recommends that a corporate client purchase works by emerging
younger artists on the basis of investment potential, without providing any other services, the art
advisor will be considered to be performing a consulting service. The charges to the corporate client
for such services will not be subject to state or local sales tax.
F.
When an art advisor is retained to provide collection management and consultation
services consisting of location of artwork based on themes for a corporate art collection program
which includes print, wall sculpture, textiles, photography and paintings, and which provides for
signage, the art advisor will be considered to be performing interior decorating and designing
services. Accordingly, the total receipts from charges to the client for such services will be subject
to the tax imposed under Section 1105(c)(7) of the Tax Law.
G.
When an art advisor is retained to advise a firm on the acquisition of over 100 works
of art of various mediums, regardless of price, in connection with relocation to new offices, to
provide advisory and supervisory services in connection with the reframing of the existing collection
and the installation of the entire collection of 250 artworks at the new location, to provide signage
for the new artwork and to provide services in connection with the preparation of a catalogue on the
entire collection, the providing of the advisory and supervisory services in connection with the
reframing and the installation at the new location will be considered as performing interior
decorating and designing services. Accordingly, the art advisor's total charges to the client, including
the charges for signage, for advice pertaining to the acquisition of new art and for the services

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performed in connection with preparing a catalogue will be subject to the tax imposed under Section
1105(c)(7) of the Tax Law.
H.
When an art advisor is retained to only provide appraisal services and to review an
existing collection of artworks with a view toward recommending deaccessioning one third of the
collection, the charges to the client for such services will not be subject to New York State or local
sales tax as such services are not among the taxable services enumerated under Section 1105(c) of
the Tax Law. However, when the art advisor also provides supervisory services in connection with
the framing and the installation of the remaining collection at a new location, the art advisor is
considered to be performing interior decorating and designing services and the total charges to the
client for such services including the charges for appraisal services and for recommending the
deaccessioning of part of the collection will be subject to the tax imposed under Section 1105(c)(7)
of the Tax Law.

DATED: July 5, 1991

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.