TR 32: Photographers and Photostat Producers, Photo Finishers and X-Ray Labs

The sale of photographs and Photostat copies, including computerized, digital or other like products, are subject to sales/use tax. This also includes the sale of prints by photo finishers. The rental of, or royalties paid for, the use of photographs are also subject to sales/use tax.

Tangible personal property that becomes an ingredient or component part of photographs or Photostat copies, when purchased by photographers or Photostat producers, are exempt from sales/use tax. This property includes, but is not limited to, mounts, frames and sensitized paper. Materials used in the process of making the photographs or Photostat copies, but which do not become a component part of the photograph or Photostat copy, are subject to sales/use tax. This property includes, but is not limited to, film, chemicals, trays, plates, proof paper and cameras.

Physicians, surgeons, dentists, hospitals, X-ray laboratories and others who purchase X-ray film and then expose it for the purpose of diagnosis are considered the consumers of the X-ray. Therefore, tax applies to the purchase of all materials and supplies used to expose and develop the finished X-ray film. These materials include, but are not limited to, film and chemicals.

Examples:

1. A Boulder newspaper pays a royalty to a photographer for the right to use a photograph on its front page. The royalty charge is subject to sales/use tax.
   
   
2. A photographer purchases the following: sensitized paper, film, developer, proof paper and frames. The sensitized paper and the frames, provided that they are resold to customers, are exempt from sales/use tax. The other items are subject to sales/use tax, because they are used in the developing process and do not become a component part of the photograph being sold.

Last Updated on Wednesday, 11 July 2012 12:20