Current through September 9, 2024
(a)
Definition. The term "photographic studio services" means such
activities as taking, restoring or retouching photographs and portraits,
recording or restoring videotapes or other motion pictures, or converting one
medium to another, such as converting a movie film to a videotape. Photographic
studio services may be performed for the general public or for commercial
customers, and may be performed in the studio or on location, such as at a
wedding.
(b)
Charges made by
service providers.
(1)
(A) When a photographic studio sells
photographs, videotapes or movie films, it is generally deemed to be selling
tangible personal property, and charges for any services performed in
connection with the production of such property are includible in the measure
of tax for its sale. Separate charges for services of a photographic studio
that do not culminate in, or that are in addition to, the sale of tangible
personal property (such as sitting fees charged when the customer does not
choose to purchase the photograph, videotape or movie film, or fees for the
restoration or retouching of a photograph, videotape or movie film supplied by
the customer) are taxable as photographic studio services.
(B) Example: A photographer takes a number of
photographs of a customer's family members in various poses and combinations
both in the studio and at the family's home. Any photographs purchased by the
customer are taxable as tangible personal property. If the photographer charges
a fee for any photographs not selected by the customer, or if the customer
selects no photographs at all, such fee is taxable as the sale of photographic
studio services.
(2)
(A) If the true object of a transaction
involving a photographic studio is not to obtain outright ownership of the
photograph, videotape or movie which was created, restored or retouched for a
particular customer, but to obtain only certain of the intangible incidents of
ownership thereto, such as the right to reproduce, change or market the
photograph, videotape or movie, the charge for such transaction shall be
considered a charge for photographic studio services and the transfer of
intangible personal property. The charge for the transfer of the intangible
incidents of ownership may be only excluded from tax to the extent that it is
separately stated from the charge for the photographic studio services on the
bill to the customer and the service provider can demonstrate to the
satisfaction of the commissioner that such charge is reasonable. If, however,
the charges for the sale of the intangible incidents of ownership are not so
separately stated, the entire charge shall be taxable as the sale of
photographic studio services.
(B)
Example: A department store submits to a photographic studio a sketch of how it
would like an advertising circular laid out. The studio selects the background,
set, props and models for the circular and photographs them, producing a color
film negative which it furnishes to the department store. Unless the department
store purchases the negatives outright, and the studio retains no ownership
rights whatsoever, the true object of the department store is to obtain the
services of the photographic studio and the right to reproduce the photographs
in its advertising circular, as opposed to obtaining the photographs themselves
as tangible personal property. To the extent that the photographic studio
separately states the charge for the sale of the right to reproduce the
photographs from the charge for its services on the bill to the customer, the
charge for the right to reproduce may be excluded from tax. The charge for the
services of the studio is taxable as photographic studio services.
(c)
Purchases by
service providers. Photographic studios may purchase tangible personal
property, such as mounts, frames, sensitized paper used in finished
photographs, videotapes and films, that is transferred to the customer as an
ingredient or component part of the finished product being sold on a resale
basis when the true object of the transaction is the sale of tangible personal
property. When the true object of a sale by a photographic studio is to render
services or convey an intangible right, as opposed to selling tangible personal
property as discussed above, then the tangible personal property purchased by
the photographic studio in connection with rendering such services or such
conveyance is considered to be consumed by the studio and is taxable. Providers
of photographic studio services are the consumers of supplies that are used by
them, such as chemicals, trays, film (other than film incorporated into the
tangible personal property sold to the customer), plates, proof paper, cameras
and video equipment, and their purchases of supplies are taxable.
(d)
Where sales by photographic studios
are deemed to be made.
(1) Sales of
tangible personal property by a photographic studio are taxable if the location
where title to such property is passed is within Connecticut.
(2) Photographic studio services shall be
subject to tax if the photographs, videotapes or movie films are taken in
Connecticut. If the photographs, videotapes or movie films are taken in
Connecticut, the sale of photographic studio services shall be taxable,
notwithstanding the fact that the materials consumed in rendering such services
were purchased outside Connecticut, the contract for services was negotiated or
executed outside Connecticut, the bill or invoice for such services is mailed
to or from an address outside Connecticut, or the purchaser of such services is
a nonresident.
