TPS-TIE

The licensing of a photograph occurs when a photographer sells the intangible right to use their photograph to a customer for further commercial display, while retaining ownership of the photo. This is sometimes referred to as commercial photography. Thus the photographer’s income arises not from the sale of photographs, but from licensing the use of their intangible property. Typical rights granted to customers include the right to publicly display, exhibit, publish, copy and sell the image.

When a photograph is made for hire, the photographer contractually agrees that all rights to the photograph they have taken will belong to the customer. Photography for hire is distinguished from other types of photography in that the photographer for hire is selling his or her services to create the photograph, but never owns the intangible rights to the photograph they have created.

Business and Occupation Tax: Income earned from producing photographs for hire is subject to B&O tax under the Service and Other Activities classification.

Business and Occupation Tax: Photographers selling prints, albums and related materials to students or parents are subject to B&O tax under the Retailing classification on their gross proceeds of sale.

If your business duplicates prints for customers, please refer to WAC 458-20-141 for more information.

Certain B&O tax classifications common to photographers are apportionable classifications; notably the Service and Other Activities and Royalties classifications. If you are “taxable” in another state or country, you may be able to apportion some of your income to that state or country, reducing the amount of income that is subject to Washington’s B&O tax.

Are you required to collect sales tax on all your food sales?

If your prepared food sales are greater than 75 percent of your total food sales, then you are required to collect sales tax on all of your food sales, with the exception of sales of packages containing four or more servings.

Please note that you can choose to collect sales tax on all your food sales, then you are not required to perform the following calculations.

Most people conducting business activities in Washington State are subject to this state’s tax registration and reporting requirements. You are considered a business when you engage in any activity, including hobbies, for gain, benefit, or advantage (regardless of profit or loss).

You must register with the Department of Revenue if any of the following apply:

The business and occupation (B&O) tax is a gross receipts tax assessed on the value of products, gross proceeds of sale, or gross income of a business. There are no deductions for labor, materials, taxes, travel expenses, or other costs of doing business.

The B&O tax rate varies depending on the business activity. There are over 30 B&O tax classifications. Generally, interior decorators, designers, and consultants report under the following tax classifications:

If your business sells or rents goods at retail or performs retail services, you must also collect and remit retail sales tax on the total charge for each sale, unless a specific exemption applies. The taxable amount includes charges for permits and other fees, labor, profit, materials, and charges for any subcontractors, even if they are billed separately.

Use tax applies to untaxed purchases of tangible personal property. Generally, sales tax is paid to the seller at the time of purchase. However, if the purchase is made directly from out-of-state sellers through the Internet, telemarketing, mail order, or other means, sales tax may not have been charged. In such cases, use tax is usually owed. Certain retail services, such as office remodeling or equipment repair (including both materials and labor), are also subject to either retail sales or use tax.