Sales Tax

[Inkbleed]

I live in Louisiana. What exactly do I charge sales tax on? It explicitly says tangible goods should be taxed. To me that means prints and CDs--but not sitting or shooting fees.

I have had some photogs tell me EVERYTHNG gets taxed and some say otherwise--services do not get taxed.

I called the tax office and they were no help.

Anyone know?

Thanks

 

[KmH]

Accountants know.

 

[Jenny1320]

I live in California and our sales tax is 8.75%. I have been running my own business for 3 years and have really tried to educate myself on this topic. I was on the phone for an hour with the board of Equalization asking a number of questions. He informed me that here in Ca. I have to charge 8.75% on actual print sales, cds, etc.... and I also have to charge tax on the sitting fee. (even though it is a labor, because we are photographers it is different) He said it's because we can shoot a wedding and charge them one fee and have that include the disc and it would all be a labor. I think the whole thing sucks to be honest. I usually either pay the tax myself on the sitting fee or pass it on to the customer with out them knowing it is actually for tax. I hate explaining that MY labor is taxed and no other profession is. So if I charge $125 for the sitting I might do $135. Or something along those lines. If you have questions you might want to call the board of Equalization they were really helpful with me. Hope this helps.

Jenny

 

[Christie Photo]

Hmmmm....

"Who must file
The state general sales tax is payable by users, consumers, lessees, and persons receiving services taxable under the law. If a seller or lessor qualifies as a dealer under the definition of the term at R.S. 47:301(4), they must apply for a sales tax certificate, collect the proper taxes from customers, and file returns with the Department of Revenue. A seller or lessor will qualify as a dealer subject to tax collection requirements if they lease, rent, or sell tangible personal property in the state, furnish services in the state that are taxable under the statute, hold property in the state for resale, maintain a business location in the state, operate in the state through full-time or part-time resident or nonresident salesmen or agents, maintain an inventory in the state of tangible personal property for lease or rental, or deliver in a vehicle owned or operated by the seller."

I suppose you have to determine if the service of photography is "taxable under the statute." I did find that portrait sessions may not be considered "fine art" and therefore are not included under that exemption.

Better check with the PPLA.

Good luck.

-Pete

 

[Photochick]

If you are running a business, charge tax. You should not feel bad about it or try to hide it. I have been in business for over 10 years and I can count on one hand the amount of times someone questioned the tax on a session fee. I hate tax, but It doesn't matter. You are mandated by the state to charge it, so just charge it and pay it! Charge tax on everything. The State only cares if you are NOT collecting tax!

 

[Plato]

I live in Louisiana. What exactly do I charge sales tax on? It explicitly says tangible goods should be taxed. To me that means prints and CDs--but not sitting or shooting fees.

I have had some photogs tell me EVERYTHNG gets taxed and some say otherwise--services do not get taxed.

I called the tax office and they were no help.

Anyone know?

Thanks

Every state is different. Talk to a tax lawyer.

This is no longer true but I remember when Pennsylvania charged sales tax on a book of Shakespeare but not on a Playboy magazine. At the time, anything with a date was considered to be equivalent to a newspaper.

 

[Christie Photo]

You are mandated by the state to charge it, so just charge it and pay it!

I'm not.

Charge tax on everything.

That's one choice in my state. If I choose to do that, then I collect tax on just 10% of the total sale. OR I can choose to tax only merchandise and processing at the full rate.

-Pete