Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
420.0000 PHOTOGRAPHERS, PHOTOSTAT PRODUCERS, PHOTO FINISHERS AND X-RAY LABORATORIES—Regulation 1528
(b) PROCESSING, RETOUCHING, ETC.
420.0500 Developing—Chemicals Used in Negative/Positive Process. The correct interpretation of Regulation 1528(b) is that, when the negative/positive process is used by a photofinisher to develop exposed film furnished by the customer, sales tax applies to the sale to the photofinisher of all chemicals which are used in developing the film to a negative, regardless of how the photofinisher bills his customer. The photofinisher uses the negatives, and the chemicals incorporated therein, to make prints prior to transferring the negatives to his customer. This intervening use makes the photofinisher the consumer of such chemicals, even though the chemicals may ultimately be transferred to the customer as part of the negatives. 10/31/69.