TR 37: Reproduction Services

Sales/use tax applies to the sale of reproductions or copies of tangible personal property. Tax applies even when the original property that was reproduced or copied is exempt from tax, such as tangible personal property incidental to the performance of a service (See TR40: "Service Enterprises"). Tax must be separately stated on the invoice or receipt. The one exception is for coin-operated photocopy machines. The tax may be included in the price of the copy and the owner of the machine is responsible for separating the tax and remitting it to the City.

Examples:

1. A Boulder company hires an architectural firm to design a new building. The architect presents the company with blue prints and a 3-D model of the new building. The company requests an additional 3-D model. The original 3-D model is not subject to sales/use tax, because it was incidental to the performance of a service, but the second model (copy) is subject to sales/use tax.
   
   
2. A Boulder printing company sells photocopies. Less than 50 copies are made by self-service, using the company's coin-operated copy machine, and for quantities of 50 or more, a company employee will make copies on a high speed copier. The price of the coin operated machine copies may include the sales tax, which the printing company must separate and remit to the City; but the company must charge sales tax directly to the customer on the full price of the copies from the high speed copier.

Last Updated on Wednesday, 11 July 2012 12:33