35 Miss. Admin. Code Pt. IV, Subpt. 4, Ch. 04 — Photographers and Film Developers

100 Photographers and Videographers
101 Photographers and videographers are taxable at the regular retail rate of sales tax on retail
sales to consumers of photographs, pictures, videos, disc, and other tangible personal
property or specified digital products and no tax is due on sales to licensed retailers for
resale.
102 A photographer taking and selling pictures in Mississippi is subject to sales tax on his sales
even if his studio and photo finishing activities are in another state.
103 A photographer who creates digital images that are marketed via the internet through a
third party that also prints the images as photographs and delivers them to purchasers is
subject to sales tax as long as the photographer controls the sales of the images. The
photographer will be considered to control the sale of the images if the website on which
the images are posted appears to be the photographer's own site; the photographer is able to
design or direct the appearance of the site from which the images are sold; the
photographer sets the price for the images; the photographer determines how long the
images will be offered on the website for sale; the photographer displays the website
address on his marketing materials directing customers to the site to purchase his images;
and/or the photographer otherwise exercises control over the marketing, sale or
reproduction of the images he creates.
104 Amounts received from the sale of coupons must be included in gross income of the
photographer even though the agent making the sale retains the full amount of the coupon
as his commission for having obtained a customer. If the customer fails to redeem the
coupon and the amount paid is not refunded, the income received is taxable.
105 When schools or other organizations are allowed a commission for handling the sales of a
photographer or photo finisher, such commission must be included in the income of the
business.
106 (Reserved)
200 Film Making
201 Income from the production of a film, such as commercials, promotional videos,
advertisements, etc., is not considered the sale of tangible personal property or specified
digital products and as such, is not subject to sales tax. If the producer or developer of such
film produces multiple copies for sale, the activity then becomes taxable as the sale of
tangible personal property or specified digital products.
202 Purchases of film or videotape for use in performing a service are taxable for sales or use
tax. Purchases of film or videotape that are to be resold are exempt from sales or use tax.
203 (Reserved)
300 Motion Picture Making
301 Certain exemptions and a reduced rate are available for machinery, equipment and supplies
used in the production of a motion picture in Mississippi. The term "motion picture" is
defined to mean a nationally distributed feature -length film, video, television series or
commercial made in Mississippi and does not include the production of television coverage
of news and athletic events, or a film, video, television series or commercial that contains
any material or performance defined in Section 97-29-103.
302 Machinery and equipment used in the production of motion pictures shall be defined as
manufacturing machinery subject to the special reduced rate of 1½%. Equipment or
machinery bought or leased outside of Mississippi for exclusive use on location in
Mississippi will be subject to a use tax of 1½%. Manufacturing machinery that is used in
the production of a motion picture is not limited to a plant site use. Items defined as
manufacturing machinery include:

# 1.

Audio Equipment

# 2.

Camera Equipment

# 3.

Computer Equipment (for animation, editing or special effects)

# 4.

Editing Equipment

# 5.

Lighting Equipment

# 6.

Projection Equipment

# 7.

Sound Equipment
303 (Reserved)
400 Film Developing
401 Income received from developing, retouching, printing, tinting or other photo finishing
activities is taxable at the regular retail rate of tax when performed for a consumer and no
tax is due when performed for other licensed retailer for resale.
402 (Reserved)
500 Purchases
501 Purchases by licensed retailers of merchandise for resale are exempt from sales or use tax.
502 Purchases of paper and film for use in making photographs are exempt from sales or use
tax as raw materials and chemicals used in processing the same are likewise exempt.
Machinery and machinery parts for studio use in developing film, photographs, prints or
slides are taxable at the 1½% reduced rate of tax. Machinery or equipment provided for
customer use to copy or reproduce photographs are subject to the 7% regular rate of tax.
503 (Reserved)
35.IV.4.04 revised effective October 16, 2021
Chapter 05 - Printing Industry
100 General
101 The term "Printer" includes publisher and other producers or reproducers of lettering or
images of any kind on paper, printing plates or other material. Providing copiers, printers
or other machinery in the owner's place of business for use by customers who make their
own printed material for a fee does not fall under the term "Printer".
102 Gross proceeds of sales by persons engaging in the printing business are taxable at the
regular retail rate of tax on the total charge with the following exceptions:
1. Sales of printed matter or printing services to licensed dealers for resale at retail in the
regular course of business are exempt from sales tax.
2. Where stamped envelopes or post cards are purchased and printed for the customers,
the amount of the postage may be deducted from the total charge.
3. Sales of daily or weekly newspapers and periodicals or publications of scientific,
literary or educational organizations which are exempt from Federal income taxation
under Section 501(c)(3) of the Internal Revenue Code of 1954 as it existed as of March
31, 1975, are exempt from sales tax.
4. Printed products that are delivered outside of this state are exempt from sales tax.
103 Purchases by a printer of ink, printing stock, staples, stapling wire, binding twine, glue
and other tangible personal property which become a component part of the printed
matter, or are coated upon or impregnated therein, are purchases of raw materials and
exempt from tax. Purchases of component materials which are used or consumed by the
printer in the fabrication of plates incidental to a customer printing job are likewise
deemed to be component materials and exempt from tax provided that title to such
property passes to the customer.
104 Purchases of machinery, machine parts, computers, digital equipment, or software used
directly in the printing or reproduction process are taxable at the 1 1/2% special rate of
tax. Purchases of electric power or other fuels used directly in the printing or
reproduction process are exempt from sales tax.
105 Purchases of other equipment and supplies are taxable at the regular retail rate of tax.
Such other equipment includes but is not limited to inserters or mail sorting equipment.
Purchases of copiers and other equipment provided for use by customers who make their
own printed material are taxable at the regular retail rate of tax.
106 Rental or lease of machinery and other tangible personal property is taxed at the same
rate as sales of the same property.
107 Adequate records must be maintained to substantiate tax classifications of sales and
purchases.
108 (Reserved)