Bill > H2697

This bill proposes to exempt certain original and creative works of art from sales and use tax in the Commonwealth, meaning that when these specific items are sold, the buyer will not have to pay an additional tax on top of the purchase price. This exemption applies to works created and sold by writers, composers, or artists who reside in the Commonwealth, as well as works sold by art galleries located in the Commonwealth. The types of works covered include books, plays, musical compositions, paintings, drawings, sculptures, traditional and fine crafts, films, and dances, as long as they are original, creative, and not produced for industry-oriented purposes. To qualify for this exemption, artists and galleries must apply to the Department of Revenue for a Certificate of Exempt Sale and may be required to provide documentation about the creation of the work and submit annual reports on sales. Artists and galleries must also hold a valid permit to make retail sales and comply with all sales and use tax laws, including showing an exemption number on customer invoices and sales tax returns. The bill also clarifies that individuals are considered residents of the Commonwealth if they are domiciled there or maintain a permanent home there and spend more than 183 days in the state during the tax year. Finally, the bill states that if a work is exempt from sales tax, it will also be exempt from use tax, which is a tax on items purchased outside the state but used within it.