WAC 140

Tax on retailers.

Tax on wholesalers.

Tax on selected business services, financial businesses, or other business or service activities.

Tax imposed--Retail sales--Retail car rental.

Photofinishers and photographers.

SALE OF PHOTOGRAPHS TO SCHOOL CHILDREN

PHOTOFINISHING FOR OUT-OF-STATE CUSTOMERS -This document explains that photofinishing is a manufacturing activity subject to the manufacturing or processing for hire B&O tax. WAC 458-20-140 (Photofinishers and photographers) currently provides this information. The ETA is also not entirely accurate as it excludes information on how manufacturers report multiple activities and claim a multiple activities tax credit (MATC). Cancelled by ETA 2003 -4s 09/14/01

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

New Apportionment Method

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

Printers and Publishers of Newspapers: B&O Tax Changes and Definitions

Advertising Income from Electronic Version of Printed Newspaper Now Taxed under Printing and Publishing Classification

USE AND/OR DEFERRED RETAIL SALES TAX -- COMPONENT PART -- FILM. Film purchased by photographers and used to make prints for sale to consumers was found subject to use and/or deferred retail sales tax because it did not become a component part of the photographs sold to the customer.

B&O TAX -- RETAIL SALES TAX -- DEFINITION -- PHOTO SESSION FEE. Photo session fees and beauty salon services were held taxable under the Service and Other Activities tax classification when invoiced and paid separately from an order for prints.

SALES TAX -- USE TAX -- CATALOGS -- PHOTOGRAPHERS. The production of negatives and transparencies by a photographer for use in a retailer's catalog is a retail sale. Sales or use tax applies.

RETAIL SALES TAX -- PHOTOGRAPHY -- LICENSE TO USE. Photographers who expose film, develop, and imprint those images upon photographic paper are making sales of tangible personal property and subject to Retailing B&O and retail sales tax upon the gross proceeds of sale. A photographer who specifically retains ownership of the photographs and only grants a license to publish a photograph is not making a sale of tangible personal property. Accord: WAC 458-20-140.

TANGIBLE AND INTANGIBLE PROPERTY -- SALE OF PRINTS WITH REPRODUCTION RIGHTS -- PHOTOGRAPHERS. A photographer who sells prints, slides, and transparencies along with rights to reproduce such works is selling both tangible and intangible property. In general, absent bifurcation, retail sales tax must be paid on the entire purchase price.

RETAIL SALE -- SALE OF PRINTS -- PHOTOGRAPHER -- PHOTOGRAPHIC FEES. Photographers who sell photographs, slides, and transparencies to their customers must collect retail sales tax on such sales. The retail sales tax also applies to shooting and other fees

INTANGIBLE PROPERTY -- COPYRIGHT -- PHOTOGRAPHERS -- SERVICE B&O TAX. A sale by a photographer of only the right to reproduce photographs is a sale of intangible property and, as such, no retail sales tax is due on such sales. The photographer must pay service B&O tax on income derived from such sales.

RCW 82.08.020, RCW 82.04.250, RCW 82.04.270: WHOLESALE SALE -- RETAIL SALE - SALES OF PHOTOGRAPHIC EQUIPMENT. Sales to consumers by photographers or photofinishers of pictures, frames, cameras, films, and other articles are subject to the retail sales tax and retailing B&O tax. However, if such items are sold by the photographer or photofinisher to a buyer who purchases the items for resale and presents a valid resale certificate, the sales are subject to wholesaling B&O tax, and no retail sales tax is due on the sales.

RCW 82.04.2907: SERVICE B&O TAX -- SALES OF RIGHTS TO PHOTOGRAPHS. Prior to July 1, 1998, income derived from a transfer or sale of a copyright or other intangible property interest is subject to service B&O tax. Effective July 1, 1998, RCW 82.04.2907 created a special classification for "income from royalties or charges in the nature of royalties for the granting of intangible rights, such as copyrights, licenses, patents, or franchise fees."

RCW 82.04.250, RCW82.04.050, RCW 82.08.020: RETAIL SALES TAX - RETAILING B&O TAX -- RETAIL SALE - PHOTOGRAPHIC IMAGES The sale of an image on photographic paper is a retail sale (provided the buyer does not present a resale certificate) regardless of whether the taxpayer or its customer shoots the photograph.

RCW 82.08.020: RETAIL SALES TAX -- PURCHASES FOR RESALE -- PHOTOFINISHERS' AND PHOTOGRAPHERS' PURCHASES OF SUPPLIES AND EQUIPMENT. Photofinishers' and photographers' purchases of photographic paper and chemicals used in making prints are purchases for resale and are not subject to retail sales tax. However, photographers' and photofinishers' purchases of materials and equipment used in processing, whenever such materials do not become a component part of the final photograph or are not chemicals used in processing, are subject to the retail sales tax, unless an exemption applies.

RCW 82.04.290, RCW 82.04.250, RCW 82.04.050, RCW 82.08.020: RETAIL SALES TAX - RETAILING B&O TAX - SERVICE B&O TAX -- RETAIL SALE - SITTING OR SHOOTING FEES. Taking photographs for a fee, without developing or printing, is a professional and artistic service subject to service B&O tax and is not subject to the retailing B&O or retail sales tax.