Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(a) IN GENERAL
420.0125 Internegative and Print. The sale by a photographer of an internegative and a print shipped to an out-of-state customer pursuant to the contract of sale is exempt as a sale in interstate commerce.
However, since the photographer makes a print from the internegative prior to the exempt sale in interstate commerce, the sale of the internegative to the photographer or the photographer's use of the internegative is subject to sales or use tax.
Alternatively, if the photographer were to transfer title to the negative prior to any use, the sale to the photographer would be a sale for resale but the photographer's sale to the customer would be completed in this state prior to any interstate shipment. The photographer's sale of the internegative would thus be a taxable retail sale in this state.
However, the sale of the print would not be subject to tax if the sale meets the requirements of the interstate commerce exemption provided the photographer does not make any use of the print in this state. 1/21/94.