I am wondering what is taxable. I thought I'd heard that services are not taxable, so do I separate out in my packages what is service pricing and what is product pricing? Do I add tax to the whole package? How does it work?

It varies from state to state. The only thing you can do is call your state dept. of revenue or whoever issued you your tax permit and get information from them in writing. Even then it might not be correct, but if you have it in writing, you stand a chance of defending yourself if audited.

I believe in Texas (from when I lived there) everything is taxable becuase photography is not a professional service (as defined by the TX legislature).

karen

'nuff said.

Follow Karen's advice and you'll be golden. Don't listen to area photographers or other businesses -- just call the Dept. of Revenue and get the straight dope.

Yup - in some states, photography services are taxable because the end result or goal is a tangible product, so definitely worth asking THE SOURCE.

+1 on the above - it really does vary from state to state. It also is good to know what the rules are - I had a FOB go round and round with us last year over whether he should be paying sales tax on photographic services. In California photographic services are taxable. I had the Franchicse Tax Board section I was able to refer him to, which answered his question.

I don't know how active Texas is, but I know in California they have gone after photographers who work under the table or don't charge tax. A friend of ours was being booked by someone who worked for the agency and he told of how he would go undercover to photographers posing as a potential client to see if they would charge him tax. If they decided to go after a photographer they basically come in and confiscate all your business records including your computers so they can determine what tax you owe. PLUS thwy will go after the client to have them pay the tax they should have. OUCH!

As much as I hate having to collect taxes, it just isnt worth the risk.

+1 check with your state or tax accountant. For us if you are delivering a product you must charge sales tax. Since this we offer products in our packages we charge sales tax. Hourly fees are a service so no sales tax is charged.

Not only State to State but county to county. I know where I am ALL things are taxable- even the service ( I didn't know that at first) but I did what the others suggested, contact the city too...you want to make sure your doing what is right for your city.

Around here (TX), the deposit and even the sitting fee is not taxable UNLESS it ends up resulting in the delivery of a finished tangible item. Which means about everything ends up getting sales tax applied to it. But, yes, you need to find out from the people who govern in your area.

In the Beehive State I tax everything I shoot/sell unless I shoot out of state or ship out of state.

I recommend the accountant over the DOR...my accountant did a lot of research for me and told me I was doing exactly what I should be doing (taxing for products only...not labor...i.e. when a client pays for an album...only the materials are taxable...I bill part of the album as design services...labor...thus, not taxable).

*BUT EVERY STATE IS DIFFERENT...and a lot of what we do is subject to interpretation by different tax authorities.

So...talk to your accountant.

I would still ask your state... I have heard some accountants in this area have been wrong...

http://dor.mo.gov/tax/pros/proposedrules/E...-380-dor-vw.pdf

Everyone in Missouri needs to read that and either confirm their business practices OR get em right. =o)

Google is our friend, woot!

Enjoy guys, hope this helps a lot of people.

The KEY is stating that the SERVICE is not taxable, only products purchased afterwards.

-tmiller
Tim Miller Photography
http://tmillerphoto.com

be careful about this and contact your state.

there may be a use tax (not just sales tax).

i actaully email the state when i have a question. they relpy in a few days and then i have it in writing. has been very helpful and it doesn't cost anything.

Good point. Make sure you have a good accountant! LOL

learned the hard way - yes, they can be wrong anywhere.

email the state.

Out here in Southern California, I charge tax on 100% of everything we do. Packages, prints, sessions (products and services). It's an itemized line on our conracts/agreements.