Mich. Admin. Code R 205.109 — Photographers and photo processors

Rule 59. (1) If a photographer’s sitting fee or session fee is part of a package that
includes tangible personal property, such as prints, the total amount charged for the
package is taxable, even if the packaged parts are separately itemized on the invoice. If a
sitting fee or session fee is charged as a separate transaction, and the customer is not
required to also purchase prints or other products, then the sitting fee or session fee is not
taxable.
(2) The development and processing of photographic images, whether using a physical
or digital process, together with the production of prints, film strips, slides, or other
tangible personal property, are subject to sales tax on the total price charged to the
customer. Whether equipment, materials, and supplies purchased for use in the creation
and development of photographic images are used in industrial processing and are
therefore exempt from tax, depends upon the process used to develop the photographic
Courtesy of Michigan Administrative Rules
images. Equipment, materials, and supplies purchased for use in the creation,
development, and sale of digital products, including digital photographic images, are not
used in industrial processing, and are taxable. However, equipment, materials, and
supplies purchased for use in the physical processing of non-digital photographic images,
such as the development of exposed film or film negatives, may be used in industrial
processing and are exempt from tax, as described in section 4t of the General Sales Tax
Act, 1933 PA 167, MCL 205.54t and section 4o of the Use Tax Act, 1937 PA 94, MCL
205.94o.
(3) Coloring, tinting, retouching, restoration, and similar services, if performed on
photographs or images owned by the customer, are nontaxable. If the services are
performed as part of a package that includes tangible personal property, or in connection
with the photographer’s creation of photographic images to be sold as prints or other
tangible personal property, the total amount charged to the customer is taxable.