This Ruling has been obsoleted by AN 2000(8)
Sales Agent Services
Whether the services of a printing broker are subject to sales and use tax as "services of an agent of any person in relation to the sale of any item of tangible personal property for such person" under Section 12-407(2)(i)(U) of the General Statutes.
Printing brokers contact commercial printers either to solicit bids on printing jobs for their client accounts or to place printing jobs on behalf of their clients. Printing brokers typically place work with different commercial printers depending on the type of printed job required. Certain printing brokers specialize in placing certain types of printing jobs. The printing broker charges a fee to the commercial printer on jobs placed with it by the broker.
The sales commissions paid to a printing broker for placing work with a commercial printer is not subject to sales and use tax under Section 12-407(2)(i)(U). The service of a printing broker are similar to those of an independent commission salesman who represents many sellers of goods, and are not considered to be sales agent services for selling tangible personal property for another person.
September 25, 1990