Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-6-1 - GROSS PROCEEDS OF SALES; GROSS RECEIPTS; WHOLESALE SALES, SALES AT WHOLESALE; RETAIL SALES, SALES AT RETAIL; AUTOMOTIVE VEHICLES
Section 810-6-1-.02 - Advertising Agencies
Advertising agencies perform a service in formulating ideas and programs for advertising purposes. All materials purchased by an advertising agency including, but not limited to, brochures, drawing supplies, photographic supplies, and office supplies are consumed by the agency in performing the service and are subject to tax at the time of purchase. The subsequent transfers of brochures and other materials to the agency's clients are not classed as retail sales subject to tax. (State of Alabama v. Douglas M. Harrison, d/b/a Douglas M. Harrison Advertising)
Author: Michele Mayberry
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83; 386 So. 2d 460 (1980) State of Alabama v. Douglas M. Harrison, d\b\a Douglas M. Harrison Advertising.