Post # 1
I just received an updated invoice from my photograhper and saw that she charged us the 6% sales tax. (We are in Michigan) I was under the impression that a service is not taxed….am I mistaken? Were you charged or are you being charged a tax from your vendors on their service??
IF services are not normally taxed, how do I ask her about it without sounding rude or cheap? We are already paying $2,700 for her services and to add an aditional $156 PLUS providing a meal for her that evening is really adding up. FI is a musician and he doesn’t charge a tax when he books a wedding so that is what made me question this “tax”
Any tips would be very helpful, I do not want to sound rude when I ask her about it. It does say, that the price is susceptible to 6% sales tax, but in Michigan as far as I know, there is no tax on a service….
Post # 3
I believe it is different state to state, so you’d have to look up the laws in your state.
Post # 4
@FutureWife517: It depends the state you’re in, most likely. Here in my state, labor is not taxed.
*And, as you know, tax laws are ever changing…could be something new in 2013 as well….
Post # 5
@FutureWife517: I paid a tax and the photographer was in Alberta, CA. I also used a photographer in Utah and there was no tax.
Post # 6
Also a photographer has a physical deliverable item— the photos— whereas a musician has no physical item to deliver as they render their services, hence a photographer may not follow the same tax rules as a musician.
If you pay someone to bake you a cake, that has a deliverable item of value. It’s a good, and taxed as a good, even though the skills of the baker and the services rendered are of more value than the raw ingredients.
If you pay someone to teach you to bake, though, in many states, that would not be taxed because you are not leaving with a cake or a book.
Post # 7
I’m in Virginia, and not paying a sales tax. But I agree with others, it’ll vary state to state.
Post # 8
@fishbone: That would make sense, but since we are only getting the digital negatives, I feel like we should only be taxed for those. Or am I just splitting hairs? Maybe I should just hush and pay out the extra $156…..
Post # 9
@FutureWife517: There is always a tax, some photographers build it into their price, others don’t. I don’t build it into my price becuase the totals turn out a funny number, making it hard to remember, and it’s all about marketing!
Digital negatives are a deliverable good, and the taxes will be paid either directly *by you, in addition to the payment, or indirectly *by taking a chunk out of the photographer’s paycheck.
It’s just like every other type of tax, and is unavoidable. Sorry!
Post # 10
@fishbone: Right- I’m in CA and my photographer for our engagement photos told us of he hand delivered a physical cd with our images he’d have to charge tax, as he was then selling an item. But letting us download items from his drop box was ok and then there wasn’t tax.