Laws, Regulations and Annotations

Search

Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   


P


420.0000 Photographers, Photostat Producers, Photo Finishers and X-Ray Laboratories—Regulation 1528

Annotation 420.0168

(a) In General


420.0168 Photograph Purchases for Resale. A taxpayer maintains an inventory of photographs for copying by customers. In some instances, the customer selects a photograph, reproduces it and incorporates the reproduction into a product which the customer sells. The customer is the consumer of the photograph and the sale to the customer is a taxable retail sale.

In other cases the customer selects a photograph and purchases the reproduction rights, but does not actually reproduce it. Instead, the customer charges its client a fee for finding and furnishing the photograph. The client reproduces the photograph. The sale to the customer is a sale for resale. The sale by the customer to its client is the retail sale.

In other cases, the customer is unable to find a suitable photograph. The customer is billed a service fee to cover research costs. The customer then issues a billing to its client. Since there is no sale of tangible personal property, there is no tax. 11/4/93.