Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(a) IN GENERAL
420.0149 Microfilm with and without Processing. Retail sales of black and white microfilm sold without processing are subject to tax. Retail sales of black and white microfilm sold with processing and billed lump sum are subject to tax on the entire amount charged. Retail sales of black and white microfilm sold with processing with the charges for the microfilm and processing separately stated are subject to tax on the entire amount. The sale of the microfilm itself is a straightforward transfer of title to tangible personal property for a consideration. The processing is a processing of customer-furnished property. This is fabrication labor which is regarded as a sale under section 6006(b) of the Revenue and Taxation Code.
The exclusion provided for developing negatives only applies when the processing involves the use of separate negatives and processing. It does not apply to processing microfilm or the reverse processing method. 6/16/71.