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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13323
Experience:  15years with H & R Block. Divisional leader, Instructor
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We would like to know what is the current legislation (if any,

Resolved Question:

We would like to know what is the current legislation (if any, which I don't think there is one) in regards XXXXX XXXXX photographers (especially wedding photographers), some people say that only should be paid the "tangibles" and some other people say that it should be on everything. Consider a wedding event: A professional photographer will sell to the couple a photography package. These packages usually consist on:
- Complementary engagement session (1 hour)
- 8 hours of shooting the day of the wedding(plus a second potographer/assistant)
- DVD with images
- Image Hosting (for them to purchase prints online)
- Some prints
- Wedding album

A package like this will cost approximately (depending the photographer) $3k to 6k. Usually requires a retainer to hold the date.

It was a ruling against a photographer in Alabama a few years back and they had to pay a lot of money on uncollected taxes (see http://216.226.178.107/aljrules/05-1240.pdf)

What's the reality? What is taxable and what is not?

Thanks
Submitted: 4 years ago.
Category: Tax
Expert:  Robin D. replied 4 years ago.

Robin D :

Hello and thank you for using Just Answer
The Alabama sales tax is a license tax paid for the privilege of selling tangible personal property at retail in Alabama. It is also a license tax for the privilege of operating places of entertainment or amusement.
If you are referring to the Thigpen case as cited by the Photographic compnay in Opelika the finding was as follows:


 



Taxable "gross proceeds" is defined at Code of Ala. 1975,


40-

23-1(a)(6) as "[T]he value proceeding or accruing from the sale of


tangible personal property . . . without any deduction on account


of . . . labor or service costs . . . or any other expenses


whatsoever . . . ". That is, labor or services performed by the







seller as a part of and necessary to complete the sale are taxable.



A fixed rate fee for services or labor that is not based on or



contingent on the subsequent sale of property is not taxable.

From my understanding the sales tax applies to total. The photography just does not fall under the professional services (although we could argue that is not going to change teh state's opinion).

Robin D :

I thnak you in advance for clicking ACCEPT

Robin D :

thank* sorry* not thnak

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