Do you charge TAX on your PRINTS?

[eslaydog]

I do portrait photography. I would like to know if anyone knows if I have to charge tax on the prints my clients order?

The actual print, say a 4x6, costs me 29c to print. I charge $10. Do I have to charge them $10.76?

Thanks,
Erin

[defordphoto]

If 7.6% is your local tax rate, yes. Now if you sell (mail or Internet order) to someone out of your state, then you charge nothing.

[eslaydog]

So there is tax on art? Are portraits considered art (by the gov.)?

And, what do I do with this tax I collect?

[mbze430]

If you going to charge tax, that means you have a resales license. If you have a resales license that means you need to report your profit/lost to Uncle Sams every year.

[Atomic79]

Please talk to a lawyer or someone that knows the laws in your state. However, as I understand it all you are doing is altering (printing the image that you own, the film or digital file) not the actual product which is the image. You are selling the client your time/labor, which I believe is not taxable, not the image itself. Now if you transfer rights to the image I'm not sure. Again, please talk to someone smarter then me.

[SonyaL]

I was told you have to charge tax on the product in your state.
This would mean quarterly taxes on this its a pain in the BUTT I know this from having a previous business.
Now see if you order prints out of state you are not taxed because its out of your state but when you sell something in your state its taxable.

Now IF you want to count the business for a loss on taxes for the 6 or 7 years thats allowed this would also help you tax wise with uncle sam.

If you buy pics at walmart from their studio you are taxed.
Its very confusing I agree.
In order to collect tax you have to have a tax number and assume name certificate in your state.




Sonya

[cdifoto]

A photograph is a product. But if you are not registered as a business within your state and have a tax ID number (ie resale license) then you do NOT charge sales tax. Either way you have to report your income to Uncle Sam.

[Curtis N]

Eslaydog,

It might help if you could give us some clue where you do business. This is a world-wide forum, and tax laws vary greatly.

In light of that, I highly recommend that you secure the services of an accountant in your area. As a general rule, strangers on internet forums are not reliable sources for legal advice, medical advice, or tax advice.

[chtgrubbs]

Usually whatever state office issues sales tax permits can answer all your questions. But in this case, you are selling them a product, which must be taxed, at least in the 3 states in which I have worked.

[defordphoto]

So there is tax on art? Are portraits considered art (by the gov.)?

And, what do I do with this tax I collect?

Since you're logged onto EarthLink we'll assume yer from the USA, so yes if you make a sale of a product in a state that charges sales tax, you need to charge that tax to your customer.

When you are paying for the product (the printed photograph) in the retail lab/store in the state you live in you need to present to that store owner a Resale License/Certificate as regulated by your state so YOU do not pay the state sales tax.

What a resale cert/license does is put the burden of the sales tax onto the customer and not you. However, if you do pay the sales tax on a product you sell, you can deduct that from your yearly sales tax report at the end of the year.

Some states allow you to operate a limited business without tax obligations.

[Zepher]

Here in VA, I believe you charge for the prints but not for the labor, ie. if I did a portrait session with a sititng fee of $75, that $75 isn't taxed, but when they order the prints, those get taxed.

[Mike Panic]

in pa, you must collect tax for services rendered in regards to photography, 6% sales tax.

it is also up to you to report that as part of your income and then pay the state back (yearly or quarterly)

for the real answer, a cpa would be your best bet..

[Wilt]

Rules about Salex Tax vary by state. Some tax 'Products' but not 'Services'. Some say that Photography results in Product which is totally taxed, even though part of the amount your charge might be construed as a service...because your labor was MAKING THE PRODUCT but you provided no service per se -- whereas in a car repair shop some PRODUCT (taxed) was used in providing you with SERVICE (repair which is not taxed). Then you get into standard interpretations, like, "What if I charge $100 for a portrait sitting fee and charge $150 for the wall portrait...do I tax $250 or $150?"...(answer depends upon the state you're in!!!)

[Knightshade]

Obtain a business license.

http://www.oc.ca.gov/

If you're lucky, the office that you visit will also have a State Board of Equalization representative there. Apply for a reseller's license. He/She will be able to answer all of your questions for you.

http://www.boe.ca.gov/info/reg.htm