Separately-Stated Photography Services Taxable In Arizona

The Director’s review upheld an earlier decision that separately-stated photographer’s fees were subject to the state’s transaction privilege tax. Specifically, the photographer did not qualify for a “service in addition to a retail sale” exemption as the services provided by the photographer (site visits, set-up, taking photographs, rush processing) were activities that helped create the photographs for sale, not a “service in addition to a sale”. The Director stated that the dominant purpose of a photographer was to sell photographs which qualify as tangible personal property. The photographer also did not meet the requirements to qualify for a “service occupation or business” exemption as its business does not require a state sanctioned or issued license. (Case No. 200500067S-REV, July 17, 2006)

Posted on November 14, 2006