IDAPA 35.01.02.056 — PHOTOGRAPHERS AND PHOTOFINISHERS (RULE 056)

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
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 057
Page 54
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)