Are charges for freelance writing taxable when the copy will end up in an advertising brochure or catalog?

Plain-English summary

Charles Mintz asked whether State and local sales tax applies to charges for professional freelance writing services where the copy eventually becomes part of an advertising brochure, catalog, etc.

The Department held the writing service is not taxable.

• Only enumerated services are taxed. Section 1105(c) taxes just five specified categories of service: (1) furnishing information (with exceptions); (2) producing, fabricating, processing, printing or imprinting tangible personal property; (3) installing, maintaining, servicing or repairing tangible personal property; (4) storing tangible personal property; and (5) maintaining, servicing or repairing real property.
• Freelance writing fits none of them. The writing service doesn't fall within any of those categories.
• Result: the receipts from the freelance writing service are not subject to the § 1105(c) tax — and it doesn't matter that the finished copy later appears in an advertising piece.

What this means for you

New York taxes services only if they're on the § 1105(c) list. Sales tax on services is the exception, not the rule; a service is taxable only if it matches one of the five enumerated categories. Freelance writing isn't one of them, so a writer's fee for producing copy is not taxable.

The end use of your work doesn't change your service's category. That the copy will be printed in a brochure or catalog doesn't convert authorship into a taxable "producing/printing tangible personal property" service — the writer is providing a nontaxable creative service, separate from whoever later prints the piece.

Separate the writing from any taxable production. If the same vendor also prints or produces the physical brochure, that printing can be taxable under § 1105(c)(2). Keep authorship (nontaxable) distinct from production/printing (potentially taxable) when billing.

Common questions

Q: My freelance writing ends up in ads — is my fee taxable?
A: No. Freelance writing isn't one of the five enumerated services in § 1105(c), so the fee isn't subject to sales tax, even though the copy later appears in an advertising brochure or catalog.

Q: Why isn't this a taxable "producing or printing" service?
A: Producing, fabricating, printing or imprinting tangible personal property (§ 1105(c)(2)) is about working on physical property. Writing copy is a creative service, not the production or printing of the physical piece, so it falls outside the enumerated categories.

Q: Could any part of a writing-plus-printing job be taxable?
A: Yes — if the vendor also prints or produces the physical brochure, that printing may be taxable under § 1105(c)(2). The freelance writing itself remains nontaxable; bill the components separately.

Citations and references

Statutes, regulations and authority:

• Tax Law § 1105(c) — taxes only five enumerated categories of service (information services; producing/fabricating/processing/printing/imprinting tangible personal property; installing/maintaining/servicing/repairing tangible personal property; storing tangible personal property; and maintaining/servicing/repairing real property); services outside these categories are not taxed

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1981.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/h81_76s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-H-81(76)S
Sales Tax
April 21, 1981

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S810l23A

On January 23,1981, a Petition for Advisory Opinion was received from
Charles Mintz, 135 Central Park West, New York, New York 10023.
The issue raised is whether State and local sales taxes, which are imposed
under Articles 28 and 29 of the Tax Law, are due with respect to charges for
professional free lance writing services where the copy eventually becomes part
of an advertising brochure, catalog, etc.
Section 1105(c) of the Tax Law imposes a tax on the receipts from five
specified categories of service. These include: The furnishing of information
(with certain exceptions); producing, fabricating, processing, printing or
imprinting tangible personal property; installing or maintaining, servicing or
repairing tangible personal property; storing tangible personal property; and
maintaining, servicing or repairing real property. Inasmuch as the service in
question does not come within the ambit of any of the categories set forth in
section 1105(c) of the Tax Law receipts from the sale of such service are not
subject to the tax imposed thereunder.

DATED: April 1, 1981

TP-8 (4/80)

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau

JAMES H. TULLY, JR., COMMISSIONER
LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR