Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 420.0169


420.0169 Photographic Documentation Service. A taxpayer photographs personal property and structures for possible insurance claims and tax purposes. The taxpayer supplies the film and performs the photography. It also stores the negative film (long term, no extra charge), and grants the customer the right to order prints (photos) of the images on negative film as required, for which there is a reasonable charge plus sales tax. A flat fee is charged for the original photo transaction.

Where the contract with the customer states that the film remains the taxpayer's property, the original photo documentation session would be a service transaction, not a sale and, thus, the charge for this session is nontaxable. The taxpayer is the consumer of the film and other property used in providing this service. On the other hand, where title to the film does not pass to the customer but slides are given to customer if the customer wishes as a "free service," then the transfer of possession of the slides or any tangible product of the original session would result in the entire charge being taxable. In the same situation, if the customer is allowed to buy the slides for a small charge rather than receiving them "free of charge," the sale of the slides would be taxable. The tax also would apply to the entire charge to the customer for the original photo session. 2/3/81.