Long reach of sales tax hits architects' firms. (clients' tax liability for reimbursed blueprint and model expenses) (Focus: Architecture & Engineering)

When is a tax not a tax, and how can it be applicable to a tax-exempt institution retroactively to 1966? These are questions architectural firms across the state are asking the Department of Revenue, and they are getting very frustrated with the answer.

Many architectural firms pay no sales tax on blueprint and model expenses reimbursed by tax-exempt clients. The Department of Revenue, however, has been auditing firms and warning of its intent to assess for back taxes, interest and penalties.

An intense legal debate has developed between affected architects and the DOR over whose responsibility it is to swallow almost 25 years of liability.

According to DOR spokeswoman Michelle Andrews, the audit have been going on for several years. A few firms have paid assessments, said Bernard Crowley, deputy commissioner of the DOR audit division. A temporary freeze has been placed on additional assessments while negotiations continue.

"We …