Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(a) IN GENERAL
420.0303 Sitting Fees—Make Up Artists. A beauty salon contracts with its customer to provide hairstyling, make-up, and one photograph for $29.95. The taxpayer provides the make-up artist and photographer who will take pictures of the salon's client and give her the one "sample" photograph. The taxpayer receives $9.95 which it characterizes as "sitting fees," contending that it is selling a nontaxable makeover service and that the "sample photograph" is free.
The firm's business logo indicates it is in the glamour photography business. Additionally, most of its income is derived from selling additional photographs. The facts, therefore, indicate that the makeover is incidental to the transfer of the photograph. The entire amount received for the "sitting fee" is taxable. 6/18/97.