Tax is due when a draftsman or designer uses a customer's specifications to create delineations, blueprints, designs for printed circuit boards, or other types of drawings. Tax applies whether the drawings are prepared manually or with a computer.
Tax is due on the total charge for drawings, blueprints, delineations, and circuit designs and on charges for paper and electronic copies of these items.
No tax is due when the items are delivered to locations outside Texas, but the draftsman should keep copies of bills of lading to document any out-of-state deliveries.
Since they create taxable drawings for their customers, draftsmen can take advantage of manufacturers' sales tax exemptions. For more information on the exemptions available for manufacturers, see Rule 3.300.
A drafting company should keep exemption certificates, resale certificates (PDF) and other documentation to show tax-exempt sales or purchases.
No tax is due when an engineer uses a customer's rough sketches or specifications to develop comprehensive specifications. Instead, the engineer must pay tax on goods and taxable services used to provide the service.