Prettym1k3
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 p.2 #15 · If you could do it all over again... | |
DigMeTX wrote:
So were you not reporting sales taxes at all before that?
brad
D. Diggler wrote:
Why weren't you paying the sales tax in the first place?
Well, up until about 2-3 years ago, California was very vague (and, by the way, they still are) with how they define photography. They now, per an 80 page document, define photography as a "product based service", which means that even they admit it is a service (hence, sales tax is not applicable), but they believe it is subject to sales tax because it provides hard products (photographs). According to them, if you ever deliver anything physical to your clients, including if you load up your client's own thumdrive with images, and hand it to them, then their entire session is taxable. But if you deliver via only electronic methods, then it is not taxable. The worst part is that most B.O.E. employees don't even understand it. I had to talk to three different people to get even the most muddy and questionable of answers.
I suppose some fault rests with me. But there is zero communication between government agencies about this. I had a business license. I had insurance. I looked to see if there were any groups that I needed to join, or dues to pay. And no one mentioned contacting the B.O.E. But sales tax wasn't on my radar at first because I was providing a service, not a product. And only products are taxable. Then again, I've heard stories where people come clean and contact the B.O.E., and the photographer is told thank you, and just told to start paying as of immediately, instead of having their sales taxes backed to the beginning of their business. I was not so lucky.
It's sad because I was punished for doing the right thing. And honestly, this day and age there are so many government agencies telling you what to do and how to do it, it's nearly impossible to truly 100% abide by and comply with all applicable local, state, and federal laws. I mean, honestly, how many people truly pull a photography permit to shoot in a public park for an engagement session? I've venture to say that none of us actually do that.
On a side note, but the B.O.E.'s statement as to photography is almost intentionally written to confuse the crap out of people. Clearly written by a lawyer. And is far too long to simply communicate: "We need money. Screw you. What we say goes. Pay us sales tax because we said so."
Oh! And per the B.O.E., because I use SmugMug to sell my prints, I do not pay sales tax on that. Technically SmugMug pays the sales tax as SmugMug is making the sale, and I simply must pay income taxes on the 85% I receive from SmugMug. This came straight from a B.O.E. representative.
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] and this has led me to not displaying on the internet some of my more favorite or unique images.
I have a whole hater club of jealous petty photographers. I wish they were like me, get inspired and strive to be as good instead of being petty jealous hater. I just dont hate on photographer better than me I try to be as good or better!