field_block:node:guide:title

Taxable Sales

field_block:node:guide:body

The sales price includes all charges necessary to create the taxable product.

The entire amount billed to the customer is taxable, even if services are separately stated because the end product could not exist without the labor and materials to create the images.

field_block:node:guide:field_paragraph

Items Included in the Sales Price [+]

Examples of items and services included in the sales price:

Consultation
Copyright or licensing fee
Delivery charges
Editing
Models
Re-Take charges
Production labor charges
Printing
Retouching photos
Props
Sitting or session fee
Stylists
Travel expenses (including taxes paid)
Wardrobe

Note: If the customer pays for a sitting fee or other services but it does not purchase any tangible photos or proofs, then there is no taxable sale.

Sales Tax Rate [+]

To determine the tax rate, use the location where the product is received by the customer. Local taxes may apply in addition to state tax.

Example 1: Your photography studio is in Minneapolis. You take photos at a wedding and reception in Duluth. The couple now lives in Saint Paul. You provide proofs to the customer on a flash drive at your studio, but deliver the finished canvas and albums to the customer’s home address in Saint Paul. You send an additional album to the bride’s mother in Wisconsin.

The flash drive you provided at your studio is taxed at the rate in effect for Minneapolis.
The finished canvas and albums delivered to the couple’s home are taxed at the rate in effect for St. Paul.
If the mother’s album is separately stated, no Minnesota tax is due on the out-of-state delivery.

Example 2: You’re a photographer who sends images to a photo processing lab. The lab prepares the prints and sends them to the customer in Rice County. You bill the customer for taking the photos and for the final prints. The entire charge is taxable at the rate in effect for Rice County.

Local Sales Tax [+]

Some cities and counties have local sales and use taxes. If you make sales into or are located in an area with a local tax, you may owe local sales or use tax. For more information, see Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use the Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The map and rate calculator do not include special local taxes.

For more information, see:

Guide Menu

Taxable Sales