Tax Type
Retail Sales and Use Tax
Description
Photographic Materials
Topic
Taxability of Persons and Transactions
Date Issued
03-14-1985
March 14, 1985
Dear***
This will reply to your letter of January 11, 1985 in which you submit an application for relief of sales and use tax assessed to your photography studio as the result of a recent audit.
You contest the assessment of tax upon film used in your business, claiming that you were advised by a departmental representative at a 1966 public meeting in Charlottesville that film would not be subject to the tax when used by a photographer to produce photographs for sale. I regret that you and other Charlottesville area photographers may have been incorrectly advised as to the applicability of the sale and use tax to photography film; however, the consistent policy of the department from 1966 to date has been that film purchased by photographers is subject to the sales and use tax.
The application of the sales and use tax to photographers was first set forth in Section 1-82 of the Virginia Retail Sales and Use Tax Rules and Regulations in 1966. The regulation, representing official policy, stated:
While the regulation was republished in 1969 and amended and republished in 1979 and 1985 (it is now Section 630-10-82 of the Virginia Retail Sales and Use Tax Regulations), the department's policy with respect to photographic materials has not changed. As a dealer registered to collect the sales tax you should have received copies of the regulations on at least one occasion since 1966. In addition, it should be noted that Regulation 1-82 was validated by the Attorney General in a 1974 opinion * * *.
Based upon the foregoing and in order to insure consistency in the administration of the law, I must conclude that the assessment issued to your studio is correct and payable. To assist you in the future, I have enclosed a copy of Regulation 630-10-82 [see } 64-341]; please feel free to contact the department if you have any questions regarding the regulation's intent.
Dear***
This will reply to your letter of January 11, 1985 in which you submit an application for relief of sales and use tax assessed to your photography studio as the result of a recent audit.
You contest the assessment of tax upon film used in your business, claiming that you were advised by a departmental representative at a 1966 public meeting in Charlottesville that film would not be subject to the tax when used by a photographer to produce photographs for sale. I regret that you and other Charlottesville area photographers may have been incorrectly advised as to the applicability of the sale and use tax to photography film; however, the consistent policy of the department from 1966 to date has been that film purchased by photographers is subject to the sales and use tax.
The application of the sales and use tax to photographers was first set forth in Section 1-82 of the Virginia Retail Sales and Use Tax Rules and Regulations in 1966. The regulation, representing official policy, stated:
-
- The tax applies to sales of photographs, portraits, prints and slides from camera film, including charges for coloring and tinting, photostats, blue prints, frames, camera film and other such tangible personal property.
The tax applies to purchases of cameras, equipment and other tangible personal property by commercial photographers and others for use or consumption. Paper and other materials which become component parts of the finished photograph or other such print for sale, and industrial materials which are coated upon or impregnated into the product for sale at any stage of the processing, may be purchased under a Certificate of Exemption. The tax does not apply to charges for developing films (including movie films) and coloring or tinting photographs furnished by customers, when a separate charge therefor is billed to the customer. Chemicals, paints, colors, etc., used in rendering such services are purchased for use or consumption by the person performing the service and are subject to the tax. However, when a single charge is made for developing films and furnishing prints, the tax applies to the total charge therefor. Developing chemicals which are coated upon or impregnated into films in processing may be purchased under a Certificate of Exemption.
- The tax applies to sales of photographs, portraits, prints and slides from camera film, including charges for coloring and tinting, photostats, blue prints, frames, camera film and other such tangible personal property.
While the regulation was republished in 1969 and amended and republished in 1979 and 1985 (it is now Section 630-10-82 of the Virginia Retail Sales and Use Tax Regulations), the department's policy with respect to photographic materials has not changed. As a dealer registered to collect the sales tax you should have received copies of the regulations on at least one occasion since 1966. In addition, it should be noted that Regulation 1-82 was validated by the Attorney General in a 1974 opinion * * *.
Based upon the foregoing and in order to insure consistency in the administration of the law, I must conclude that the assessment issued to your studio is correct and payable. To assist you in the future, I have enclosed a copy of Regulation 630-10-82 [see } 64-341]; please feel free to contact the department if you have any questions regarding the regulation's intent.
Rulings of the Tax Commissioner