Sales Tax

xxclixxx

Well I didn't realize Sales Tax could be so complicated, until I read the section on Photographers in my state's tax code:

However, the tax does apply to such items as trays, cameras, and other equipment and supplies used but not directly consumed in the process of making the photographs or photostat copies; and the tax on such items must be paid by the photographer or producer.

http://www.tax.state.ri.us/regulations/salestax/87-85.php

So does that mean I have to pay Sales Tax on my camera every time I sell a photo made from it? LOL I'm definitely going to talk to an accountant.

I also wonder if this applies to photos I sell on Smugmug. Technically it's Smugmug making & delivering the sale, I just took the photo, so I've seen payments from that sorta like commissions.

bendruckerphoto

You do not have to pay sales tax on SmugMug sales. I can't comment on your state tax regulations.

JohnBiggs

xxclixxx wrote:

Well I didn't realize Sales Tax could be so complicated, until I read the section on Photographers in my state's tax code:



http://www.tax.state.ri.us/regulations/salestax/87-85.php

So does that mean I have to pay Sales Tax on my camera every time I sell a photo made from it? I'm definitely going to talk to an accountant.

I also wonder if this applies to photos I sell on Smugmug. Technically it's Smugmug making & delivering the sale, I just took the photo, so I've seen payments from that sorta like commissions.

Maybe they are just saying the photographer has to pay tax on his equipment when he purchases it?

Angelo

JohnBiggs wrote:

Maybe they are just saying the photographer has to pay tax on his equipment when he purchases it?

correct

.

Scott_Quier

Taken out of context as you have, it's impossible to understand the intent. However, when reading the entire section (thanks for the link), it appears to obvious that:

• There is sales tax on produced prints, photostats, etc
• There is sales tax on the charges related to the service of producing the product
• There is no sales tax payable by the photographer on consumbables/ingredients (frame, mats, paper, chemicals, etc)
• There is a sales tax on the purchase of the non-consumble equipment (cameras, trays, etc) and this tax is paid by the photographer at the time of purchase.

BTW - I'm not an accountant and I am most likely all wet on my translation

xxclixxx

Ah that makes sense. Reading it all together I just couldn't pull them apart in my head - thanks!