ENGLISH VERSION

FEE ON SALE OF VISUAL ART

According to Statute of November 4. 1948, Fee on Sale of Visual Art a.o.(the Fee on Art Statute), the buyer of art shall pay a fee of 5% in addition to the price. That is if the price is more than N.kr. 2000. Resale of art submitted the Norwegian Copyright Act is also excluded, allthough the collection of a droite de suite is cooperated with the fee.

The art dealer shall collect the fee and send it to The Relief Fund for Visual Artists. "The Fund will preferentally be applied to support artists who mainly have or have had their activities in Norway, their surviving relatives and other purposes to the benefit of norwegian visual art."

For questions and further information:
Managing director Hege Imerslund,

The Relief Fund for Visual Artists.

Kjeld Stubs gt.3 N-0160 Oslo Norway.

Ph.: +47 22477433 Fax.: +47 22477430,

e-mail: bildkun@online.no. Established 1948.

BACKGROUND

The Idea of imposing a fee on art sales was introduced by norwegian artists in 1946. the point of view was originally the principle of a "droit de suite", i.e. the right of visual artists to their own works, in the sense that even if their works were sold, the artists may demand a share bof the economic profit obtained by the owner through later sales. The collecting results from other countries that at the time hade managment rules for "droit de suite", were not impressive. A lot of administration everywhere to collect the individual rights for the artists was costly. The norwegian artists wanted a practical solution, easy to administrate and which gave a surplus to distribute.
They therefor insisted on a collective arrangement with a fee on all public sales of visual art. The fee was to be tranferred to a separate Fund and redistributed as support to older, norwegian artists and their surviving mates with low income, and as a scholarship to young, talented artists.

The Norwegian Parliament adopted the proposal, and a Bill was passed in november 1948. According to the statute, a fee of 3% on all public sales was imposed. "Art" was defined in the law as painting, sculpture, graphic art and drawing, in all types of material and shapes, if the work was regarded to be an original and signed by the artist.

The fee was to be collected regardless of the quality of the work, of the nationality of the artist or wether the artist was alive or dead.
The fee was to be on top of the price of the artwork, and should be paid by the buyer. The fee should be imposed each time a piece of art was sold, regardless of earlier sales or if there was a profit or not from the sale.

The force of the system is its simplicity, both for the artists collective interests - and for the art dealer. The latter has only to collect a 5% fee without further investigations on rate of profit or other conditions that eventually provide "droit de suite".

The Norwegian Parliament has altered the statute of November4, 1948, Fee on sale of Visual Art, three times the last years:
- In 1989, where the foundation of the fee were expanded, thus including art competitions, buying for collection and art decoration for public buildings(first hand sales). The board of the Relief Fund was also disconnected from the organization of visual artists, reduced in number and elected directly from the Department(allthough the majority of the board shall be artists)
- In 1993, to bring the law in harmony with the demands of the forthcoming EØS-agreement. The formula in the statutes that "Norwegian Artists" should benefit from the fund, was changed to "artists who mainly have or have had their activities in Norway". The fee on sale of visual art is a national fee, and as such not the consern of the EØS-agreement.
- In 2007, to bring the law in harmony with Directive 2001/84/EC of the European Parliament and of the Council of 27 September 2001 on the resale right for the benefit of the author of an original work of art.

The government choose to have two fee systems, with a co-ordinated system for paying the fees. The statues of both the Copyright Act and the art fee were changed. As a result of this the fee was increased to 5 %, there were no fee on works when the price is N.kr. 2.000 or less. The paying terms were coordinated, an for resales it was nessecary to deliver lists of the sales to provide information to classify the sale as a fee to fund or a royality to a rightholder of the work of art.

Both fee and royality should be collected on sales of “original work”, meaning works of graphic art or plastic art such as pictures, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, glassware and photographs, provided that they are made entirely by the artist; or they are copies considered to be original works of art according to professional usage (limited productions or signed works, for example). According to this the fee now also includes photographical works and art craft to the extent that such works can be said to be a part of the art field.

The new rules were applied from 1. january 2007.

As a part of the Norwegian welfare-system, redistribution of wealth is regarded as a central value. The original idea of imposing a fee on art sale instead of an individual droit-de-suite came from the Norwegian artists themselves, and they have reasons to be happy for their choice. By no doubt, it has been a great economical success: In the 58 years the original law were practiced, about 260 million N.kr have been collected and redistributed to artists living in Norway.

It is to be seen in which way the income of the fund will be infectetd by the new rules. The royality part of the income is estimated to be 15-18 %, the tax is higher but it is no longer fee on the low-price sales. The distribution of the money is also different. The royalities after the individual droit-de-suite favours the successful artist and their descendants. The fee favors those (artists and heirs) in actual need. Artists in Norway are content with the solution to uphold the fee on art sales not infected by copyrights rules. It still gives substancial money to distribute.

In 2010 the money was distributed as follows:
Kr. 11.626.000,- (53 %) as mainly continous support to elderly artists with low income (including surviving relatives (widows), but also other forms of support earmarked for elderly artists. "Artist" means members of the Norwegian Visual Artists Organization, or others that fullfill the demands for such membership. (Documentation of professionality).
Kr. 8.290.000 (37 %) as scholarships, given on purely artistic criterias.
Kr. 2.212.000 ,- (10 %) as support to other items, with relevance to visual artists common interests

The administration of the fee is rather simple. The art dealers send the fee (included the individual royalty part) to a separate fund, The Relief Fund for Visual Artists. The royality part is redistributed to the copyright society BONO) . The fund have a board, elected by the Department. The Board decides how to spend the money, within the limitations for this set by the law and its regulations. The executive administration otherwise, is conducted by a staff of two persons.

In 2010 about 7,5 % of the income were used for administration costs.

*As of Janauary 1. 2007 the fee was increased from 3% to 5%

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THE LAW

Statute of November 4. 1948, Fee on Sale of Visual Art
§1
On all public sale, or sales that according to this Law is equal with public sale, of art of Norwegian or foreign copyright, the buyer must, in addition to the purchase price, pay a fee of up to 5 per cent of the same. The Ministry in question decides the size of the rate per cent.
In cases were the payment fully or partly is in form of another piece of art, the fee should be tainted both pieces, if a similar sale in cash is due to the fee. The taint is not concerning gifts.
The Ministry in question can settle further rules about what pieces of art that is due to the fee and to which content the duty to pay the fee applies to sales with conection to foreign contries or Svalbard.

Equal with public sales are, according to this Law:

Every purchase with the purpose of public apperance in galleries, museums or corresponding. Sales dirictly from the artist or private person to public, non-profit museums shall not be regarded as public sales, unless ther is a trader involveld in the sale.

Every purchase directly from the artist who has created the art, when the art is a decoration task, an ordered work or a competition draft, plus other purchases paralell to public sales.

Obligated to the fee by this Law are original work of art as pictures, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, glassware and photographic works. As original work is regarded art work made in limited copies by the artist himself or with his consent. The regulation do not include buildings.

Excepted from the fee duty are sales of art when the price excuded purcase tax do not exceed N. kr.2 000

Excepted from the fee duty are sales covered by the Statute of 12. May 1961 nr. 2 The Copyright Act § 38 c.

§2
The fee is to be paid to a specific refund fund admistrered by a board. The Fund will preferentially be applied to support artists who mainly have or have had their activities in Norway, their surviving relatives and other purposes to the benefit of norwegian art.
The Board of the Fund is appointed by the Ministry in question for four year at the time. It consists of five members with personal substitutes.
The Ministry in question lays down further rules on the managing of the Fund, on the audit of the Fund’s accounts and on the application of the means. The Ministry also settles the remunerations to the members of the Board.

§3
The fee is collected by the seller at all sales of fee obligated art in shops, at separate or collective exibitions and at all kinds of auctions on visual arts. Anybody selling fee obligated art publicly is responsible for correct payment of the fee. The same applies to the person who is responsible for the selling of fee obligated art at exhibitions. The persons mentioned are also responsable for for correct payments for public sales through consultants or intermediaries. When art as mentioned in § 1 third paragraph point 1 is purchased, the buyer is responsible for paying the fee directly to the Fund. The same goes for purchase of art mentioned in § 1 third paragraph point 2, when the buyer has obligated account for the purchase, or is an official organ or other stately, county or municipal institution. The rules in the first paragraph about responsibility for correct payment of the fee corresponds with the buyers responsibility, when according to paragraph two, he shall pay the fee. The fee may be recovered throgh destraining the goods of anyone being responsible for it. The Ministry in question lays down further rules on the collection of the fee.

§4
The Ministry gives rules about the terms for the payments of the fee.

§5
Anyone intentionally or involuntarily trespassing this Law or any prescriptions given in accordance with the Law, will be punished with fines, unless circumstances call for more severe penality.
Anyone found guilty of an indictible offence as the one mentioned, by which the Fund is, or might have been, deprived of a fee, is in duty bound, provided the the offence is intentional or grossly negligent, to pay to the fond double, and in case of recurrance, four times the amount. The provition of §3 second last paragraph applies correspondingly.

§6
The purchase tax which, according to Law of 19. july 1969 nr. 66 on Purchase Tax, might be due to the Treasury, is not affected by this Law.

§7
This Law takes effect from a moment settled by the King.

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