Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
GROSS RECEIPTS TAX RULES
Rule 006.05.06-005-GR-10 - SERVICES SUBJECT TO TAX - PRINTING AND PHOTOGRAPHY, JOB PRINTERS, PRINTERS AS MANUFACTURERS

A. The tax must be collected and remitted on the service of printing of all kinds, types and characters, including the service of overprinting. All businesses engaged in providing such services, including job printers and others, must collect and remit the applicable tax upon the gross receipts or gross proceeds derived from providing such services.

B. Job printers must collect and remit tax upon the gross proceeds derived from the furnishing of such a service to a consumer without any deduction for any costs or expenses incurred in the furnishing of such services.

Example: Customer provides information to job printer to print catalogs for customer. Job printer should collect and remit tax on the amount invoiced to customer. The job printer should pay tax on all materials used and consumed in performing the taxable service, such as the ink, paper, and all other materials used in printing the catalogs.

C. Printers who print articles of commerce for sale to consumers are considered to be manufacturers. Items used by a printer who is a manufacturer that become a recognizable (capable of being recognized), integral part of the printed product may be purchased by the printer exempt as a sale-for resale. (See GR-53.) Printers must pay tax on items used in the printing process that do not become a recognizable, integral part of the printed product.

D. The tax applies to the service of photography of all kinds. State and local sales tax apply to photography services based on where the customer receives the service. The photography service, including the sitting, is received when the customer views the product of the service (i.e. proofs, pictures, etc.).

Example 1: A Fayetteville photographer is hired to photograph the senior pictures of a Eureka Springs student. The photographer takes the pictures in Eureka Springs, but the pictures are picked up at the photographer's studio in Fayetteville. Arkansas state sales tax, as well as the City of Fayetteville and Washington County sales tax will apply because the customer receives the product in Fayetteville. (If the photographer charged a separate sitting fee, then Arkansas state, City of Fayetteville, and Washington County sales tax will also apply to the sitting fee.)

Example 2: A Fayetteville photographer is hired to photograph the senior pictures of a Eureka Springs student. The photographer takes the pictures in Eureka Springs, and makes the proofs available for viewing on its website. The applicable local tax is the first of the following locations known by the photographer: the address of the customer, the billing address of the customer, or the address of the photographer.

Example 3: A Conway photographer is hired to videotape a wedding in Little Rock and the wedding dance in Vilonia. The videotape is mailed to the customer's home in Mayflower. Arkansas state sales tax, as well as the City of Mayflower and Faulkner County sales tax will apply.

Example 4: A Fayetteville photographer is hired by a Bentonville resident to photograph pictures in Texas. The photographer takes the pictures in Texas, and per his customer's instruction, mails the proofs to Little Rock. Arkansas state sales tax, as well as the City of Little Rock and Pulaski County sales tax will apply.