Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES
Section 35.01.02.056 - PHOTOGRAPHERS AND PHOTOFINISHERS
Universal Citation: ID Admin Code 35.01.02.056
Current through August 31, 2023
Sections 63-3616, 63-3622, 63-3622D, Idaho Code
01. Sales of Photographs. (3-31-22)
a. Printed photographs are tangible
personal property. Sales of printed photographs are taxable.
(3-31-22)
b. Digital photographs
are tangible personal property when sold and delivered to the buyer on storage
media. Sales of digital photographs are taxable when sold and delivered to the
buyer on storage media. (3-31-22)
c. Digital photographs are not tangible
personal property when delivered electronically. Sales of digital photographs
are not taxable when sold and delivered to the buyer electronically.
(3-31-22)
02. Sales by Photographers and Photofinishers. (3-31-22)
a. When photographers or photofinishers sell
films, frames, cameras, printed photographs, digital photographs delivered on
storage media, photostats, blueprints, etc., they are making a sale of a
completed article of tangible personal property and they are required to
collect the tax on the total sales price unless an exemption applies.
(3-31-22)
b. When photographers or
photofinishers render service, such as retouching, tinting, or coloring of
print photographs belonging to others, they are performing taxable processing
services and are to collect the tax from their customers unless an exemption
applies. When similar services are performed on a digital photograph, the
service is only taxable if the final product is delivered on storage media.
(3-31-22)
c. Photographers may
charge a sitting fee which may be separately stated from any charges for the
photographs. When charged along with a sale of printed photographs or digital
photographs delivered on storage media, sitting fees are charges for producing
or fabricating tangible personal property and are taxable. See Rule
029 of these rules.
(3-31-22)
03. Sales to Photographers and Photofinishers. (3-31-22)
a. Photographers and photofinishers may
qualify for the production exemption if they are primarily in the business of
selling print photographs or digital photographs delivered on storage media.
Photographers and photofinishers primarily in the business of selling digital
photographs that are delivered electronically cannot qualify for the production
exemption. (3-31-22)
b. The
production process begins when the image is captured. Therefore, photographers
pay sales or use tax on purchases of props, backdrops and other items used
prior to the start of production of the photograph. Equipment and supplies
including cameras, lights, lenses, film, paper, fix, developer, and enlargers
used to produce photographs are used during the production process and are
exempt if the photographer otherwise qualifies for the production exemption in
Section 63-3622D, Idaho Code.
(3-31-22)
c. Photofinishers may
purchase equipment and supplies exempt from sales or use tax as long as the
equipment and supplies are directly used to produce photographs which they will
sell and they otherwise qualify for the production exemption provided by
Section 63-3622D, Idaho Code.
(3-31-22)
04. Definitions. For purposes of this rule, the following terms have the following definition: (3-31-22)
a.
Storage media. Storage media include, but are not limited to, optical media
discs such as CDs or DVDs, hard drives, diskettes, magnetic tape data storage,
solid state drives, flash drives, and other semiconductor memory chips used for
nonvolatile storage of information readable by a computer.
(3-31-22)
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