(Closed) Sale tax?

posted 5 years ago in Photos/Videos
Post # 3
Member
394 posts
Helper bee

This can vary from state to state. In Georgia, you are required to charge sales tax on a package if it includes any tangeble product. So if there is a cd in your package, they have to charge sales tax on the package. Also, a lot of newbie photographers tend to not be running a legit business right of the bat… aka no business license, no liability insurance and no sales tax registration… which would possibly explain why you’ve found some photographers that don’t charge sales tax.

Post # 4
Member
1314 posts
Bumble bee
  • Wedding: May 2006

There is a tangible product involved, it’s not just a service.  The photographer is delivering photographs to you.  Laws vary from state to state, but in California we have to charge sales tax.

Post # 5
Member
2697 posts
Sugar bee
  • Wedding: June 2012

Ours in PA did.

Post # 6
Member
2061 posts
Buzzing bee
  • Wedding: May 2013

My photographer did charge sales tax. However we are avoiding paying it around it by having the albums and prints ‘shipped’ out of state. 

Post # 7
Member
2616 posts
Sugar bee
  • Wedding: June 2012

no sales tax in oregon. so no we didnt pay one

Post # 8
Member
1314 posts
Bumble bee
  • Wedding: May 2006

@CityBearBride:  If you reside in the state that your photographer operates out of then I doubt this is legal.  Every state is different, but it would suck for your photographer if they got audited.

Post # 9
Member
837 posts
Busy bee
  • Wedding: October 2012

For us, if everything you get is part of a “service package”, there’s no sales tax. So if your photography package includes 8 hours of photographs and a 20-page album, you don’t pay sales tax on the actual 8 hours or the 20-page album with photos. Anything beyond that package, though, is set for sales tax. 

Example: I worked in a pet crematory (not a morbid story, I swear). “Individual cremation” was $135 and included a cedar urn. As a package. No sales tax on the urn or the engraved tag that went with it. However, if you chose to get a second urn (for a previously cremated pet, to separate the ashes, whatever), you paid for the urn, the engraved tag, and sales tax on each, because they weren’t part of the package.

Okay, more morbid than I realized, but really it was a very sweet, meaningful, compassionate job, being there for people who needed us at a very difficult time. 

Post # 10
Member
2889 posts
Sugar bee

I also hired a photographer from another state and thus didn’t have to pay sales tax. Interesting question though, I never thought about tax on photography or services in general. 

Maybe I should have looked out of state for a caterer too, that would have been the bigest savings. I bought my dress in a state with no sales tax on clothing (where my parents live) and the bridal salon was quick to point out that benefit.

Post # 11
Member
622 posts
Busy bee
  • Wedding: August 2014

@Shoppe:  Like everyone else has said, yes, in many states sales tax is applicable to photography services. Unlike a hair stylist or something like that you are walking away with a tangible product (a disc or flash drive of images, prints, albums, etc) so the entire package is taxable. If you hire an out of state photographer you should not have to pay sales tax, but in state – yes. In my state (NC) digital property is also considered a tangible product so even if I deliver your photos via email or FTP you’d still owe sales tax.

Post # 12
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

In MA there is sales tax on the service because it’s a type of service that results in material goods, ie the disk with images, prints, etc. We had to pay sales tax.

Post # 13
Member
9955 posts
Buzzing Beekeeper
  • Wedding: December 2012

It all will depend on WHERE you live…

Taxes are set by jurisdictions… be that Municipal – State / Province – or Country

Taxes will be applied by whatever current laws are in place for the GOODS or SERVICES you are buying (either individually or both)

As others have said, Photography is both a Service (taking Pics) and a Good (providing Pics)

Sorry, it is virtually impossible to give you a solid answer to your Question without knowing where you live…

Hope this helps,

 

Post # 14
Hostess
1427 posts
Bumble bee
  • Wedding: November 1999

Depends on the state/county you live in.

 

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