Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(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.