Are charges for writing one-page abstracts that summarize conference speeches subject to New York sales tax?

Plain-English summary

Alan/Anthony, Inc. asked whether receipts from writing abstracts are subject to sales tax. Its client, a nonprofit trade association, gives it the proceedings from annual international conferences, and Alan/Anthony writes one-page abstracts summarizing each speech or paper, delivered in word-processed form with an updated index (no database is involved). It will also assemble past years' abstracts into books if the client wants. The writing and the book assembly can be bought separately and are billed separately.

The Department's answer, under Tax Law § 1105(a):

• The abstracts are manuscripts — intangible property. Following Crushing Enterprises, Inc. (TSB-A-90(30.1)S), an original written work is a manuscript and is intangible personal property under Regulation § 526.8(c), not tangible personal property. So the receipts from writing the one-page abstracts are not subject to the sales tax on tangible personal property under § 1105(a).
• Book assembly is taxable — but stays separate. Assembling the abstracts into books is a sale of tangible personal property and is taxable. Because the abstract-writing and the book assembly can be purchased separately and are separately stated on the invoice, the Department applied Morton L. Coren, P.C. (TSB-A-90(33)S): the charges need not be combined. So only the book sales are taxed.

What this means for you

Original writing is intangible, not taxable goods

If you're paid to create an original written work — abstracts, summaries, manuscripts — those receipts are generally treated as intangible property and aren't subject to sales tax, even though the words are delivered on paper or a word-processing file.

Turning writing into a physical product can flip it

When you manufacture and sell a tangible product from the writing — like assembling abstracts into books — that sale is taxable tangible personal property. The medium and the finished good matter.

Separate the writing from the product on your invoices

Keep the nontaxable writing and the taxable book as separately purchasable, separately stated line items. Done that way, only the book charge is taxed; bundling them so they can't be bought separately risks taxing the whole amount.

Accountants and tax professionals

This applies the Crushing Enterprises manuscript/intangible treatment plus the Coren separately-stated rule. Compare the membership-directory manuscript analysis in TSB-A-92(42)S.

Common questions

Q: Are fees for writing conference abstracts taxable in New York?
A: No. The abstracts are manuscripts (intangible personal property), so the writing fees aren't subject to sales tax under § 1105(a).

Q: What about assembling the abstracts into books?
A: Selling the assembled books is a taxable sale of tangible personal property.

Q: How do I keep the writing nontaxable if I also sell books?
A: Make the writing and the book assembly separately purchasable and separately stated on the invoice; then only the book charges are taxed.

Q: Does it matter that there's no database involved?
A: The Department noted no database was used; the result rests on the abstracts being original manuscripts (intangible), distinguishing them from taxable data products.

Citations and references

Statutes, regulations, and authorities:

• Tax Law § 1105(a) (tax on receipts from every retail sale of tangible personal property)
• Sales and Use Tax Regulations § 526.8(c) (manuscripts treated as intangible personal property)
• Crushing Enterprises, Inc., Adv. Op. Comm. T&F, Oct. 10, 1990, TSB-A-90(30.1)S; Morton L. Coren, P.C., Adv. Op. Comm. T&F, June 29, 1990, TSB-A-90(33)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1992.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a92_32s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-92 (32) S
Sales Tax
April 6, 1992

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S920207A

On February 7, 1992, a Petition for Advisory Opinion was received from Alan/Anthony, Inc.,
145 Avenue of the Americas, 2nd Floor, New York, New York 10013.
The issue raised by Petitioner, Alan/Anthony, Inc., is whether the receipts from writing
abstracts summarizing the content of presentations and speeches given at its client's annual
conferences are subject to sales tax.
Petitioner receives from its client, a nonprofit trade association located in Staten Island, New
York, copies of the proceedings from annual international conferences held by its client. From the
proceedings, Petitioner writes one-page abstracts to summarize the contents of each speech or paper
presented at the conference.
Petitioner submits to clients a one-page abstract in word-processed form, with an updated
index of subjects and authors. No "data base" is involved in the preparation of the abstracts.
Petitioner will also assemble abstracts from past years into book form, if the client so desires.
Charges for preparing the abstracts in word-processed form and for assembling abstracts in book
form can be purchased separately and are billed separately.
Section 1105(a) of the Tax Law imposes sales tax upon the receipts from every retail sale of
tangible personal property.
In Crushing Enterprises, Inc., Adv Op Comm T&F, October 10, 1990, TSB-A-90(30.1)S the
Commissioner advised that an original handwritten or typewritten lead sheet, musical score, or
arrangement is a manuscript and considered to be intangible personal property and therefore not
considered to be tangible personal property under the provisions of Section 526.8(c) of the Sales and
Use Tax Regulations. The portion of separately stated receipts from the creative fee applicable
thereto will not be subject to the tax imposed on the sale of tangible personal property under Section
1105(a) of the Tax Law. (emphasis added)
Moreover, components of particular sales which can be purchased separately and are
separately stated on invoices need not be considered a single purchase for purposes of determining
the sales tax on such purchases. (Morton L. Coren, P.C., Adv Op Comm T&F, June 29, 1990, TSBA-90(33)S).

TP-9 (9/88)

-2­
TSB-A-92 (32) S
Sales Tax
April 6, 1992

Accordingly, Petitioner's one-page abstracts summarizing the contents of speeches or papers
presented at conferences are manuscripts and, as such, are considered intangible personal property.
Crushing Enterprises, Inc., supra. Therefore, receipts from the sale of such abstracts are not subject
to the sales tax imposed pursuant to Section 1105(a) of the Tax Law. Furthermore, the receipts from
the sale of abstracts need not be combined with receipts from the sale of books, since the abstracts
and the books can be purchased separately and charges are separately stated on invoices given to
Petitioner's client. (Morton L. Coren, P.C., supra). Thus, only the receipts from the sale of the books
are subject to sales tax.

DATED: April 6, 1992

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

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