I know every state is different, so could any Washington photogs share some tax knowledge? Specifically, do you apply to tax to an entire package price, or simply the material goods provided?
I've researched this to death, as much as I can (from Afghanistan.) Tried the DOR site, which is still Greek to me. Anybody speak Greek? Help me out!
In WA production of digital media is considered a taxable item.
Translation - The labor time to take photographs is taxable and state sales tax is applied.
Tax rates vary wildly in WA so depending on where in Tacoma you are it can be anywhere from 8.2% to 9.3%
Hope it helps.
Tobin
Roland,
I just looked at your site and you shoot film, but the same rule applies. You are producing negatives that are scanned into digital.
Same answer, you have to charge sales tax on session fees along with material goods.
WA state gets it's tax money anyway they can.
Cheers
Same answer, you have to charge sales tax on session fees along with material goods.
Thanks, I appreciate the help! So it seems bottom line is everything is taxed at once via sales tax? I plan to meet with a CPA next month, so I'm trying to gather as much background knowledge to make the best of my time with them.
Yeah, I'll be shooting a combo of digital & film, and it seems like there's really no differentiation between the two tax-wise.
Most states require tax on the entire contract. However, there are some states that only require tax on delivered goods, and some others allow tax-free delivery of "digital" delivery. Your best source of info would be to call your state tax office for their official say. They are not someone to be scared of. I actually received nice "hints" when I called my state's tax office.
amonline wrote:
Your best source of info would be to call your state tax office for their official say. They are not someone to be scared of. I actually received nice "hints" when I called my state's tax office.
Thanks, I appreciate it. Yeah, I suppose I've (ignorantly) assumed that any state office has the customer service equivalence of the DOL or DMV. I'll give them a call for sure when I'm back in the US.
