Were a photographer's full architectural charges and photographs sold for magazine reproduction taxable?

Plain-English summary

A redacted photographer's August 9, 1951 letter reached Tax Counsel through the San Jose office. California addressed two kinds of photography sales.

Under an absent enclosed copy of former Ruling 23, sales of photographs were taxable without a photographer-expense deduction. For architects who hired the requester to photograph buildings, tax therefore applied to the full charge without deductions for travel, food, or lodging.

Photographs sold to a California magazine were also taxable; national circulation did not change the result. An absent enclosed copy of former Ruling 50 exempted property physically becoming an ingredient or component of a newspaper or periodical regularly issued at average intervals no longer than three months. Reproducing the image did not physically incorporate the photograph itself, so the photographer's periodical sales remained taxable.

Source and live-annotation limits

The official PDF does not include the August 9, 1951 request, enclosed Rulings 23 or 50, photographs, buildings, architectural assignments, architect contracts, charges or invoices, travel, food or lodging records, California magazine, publication issues, issue schedule, national-circulation evidence, magazine agreement, reproduction or physical-transfer records, sales, returns, tax calculations or payments, audit, assessment, claim, appeal, or other outcome. The photographer, architects, magazine, San Jose referral personnel, copied recipient, and transactions are not identified.

The live annotation preserves only the conclusion that photographs merely reproduced in exempt periodicals do not become component parts. It omits the August request and San Jose referral, Rulings 23 and 50 and missing enclosures, architectural charges, no-expense-deduction rule, travel, food and lodging, California magazine, national circulation, three-month interval language, physical-incorporation rationale, sales-tax conclusions, redactions, missing records, and outcome limits.

What this means for you

Photographers, publishers, and tax professionals

Separate the physical photograph from the reproduced image or licensed content. Preserve contracts, property transfers, reproduction rights, publication schedules, charges, itemized expenses, invoices, circulation, returns, and tax records under current law.

Common questions

Q: Could the photographer deduct travel, food, or lodging costs?

A: No. Tax applied to the entire architectural-photography charge.

Q: Did national magazine circulation change the result?

A: No.

Q: Why was the magazine sale taxable?

A: The image was reproduced, but the physical photograph itself did not become part of the publication.

Citations and references

• Former California Sales and Use Tax Ruling 23
• Former California Sales and Use Tax Ruling 50
• August 9, 1951 request, photographs, contracts, charges and expenses, publication and circulation records, Rulings 23 and 50 enclosures, sales and tax records, and outcomes — described or implicated but not documented

Verbatim support

From the official Tax Counsel letter:

It is, therefore, our opinion that tax applies to your entire charge to architects for whom you photograph buildings, without deduction for traveling expenses or the cost of food and lodging.

With respect to photographs which you sell to a California magazine, it is our opinion that tax applies and that it is immaterial that the magazine has a national circulation.

Since photographs are merely reproduced in the publication, and the photograph itself is not physically incorporated into the publication, the sale of photographs for use in publications is not exempt.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0400
• Original supporting opinion: 385.0400 PDF

Original ruling text

385.0400

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

September 6, 1951

Dear Mr.
Our San Jose office has referred to us your letter of August 9, 1951, in which you ask concerning the application of tax to a photographer's charges • As indicated by Sales and Use Tax Ruling 23, copy enclosed, tax applies to sales of photographs, and no deduction is allowable because of the expenses of the photographer. It is, therefore, our opinion that tax applies to your entire charge to architects for whom you photograph buildings, without deduction for traveling expenses or the cost of food and lodging. With respect to photographs which you sell to a California magazine, it is our opinion that tax applies and that it is immaterial that the magazine has a national circulation. As indicated by Sales and Use Tax Ruling 50, copy enclosed, tax does not apply to sales of tangible personal property which becomes an ingredient or component part of any newspaper or periodical issued regularly at average intervals not exceeding three months. Since photographs are merely reproduced in the publication, and the photograph itself is not physically incorporated into the publication, the sale of photographs for use in publications is not exempt. Your sales of photographs to periodicals in this State are, accordingly, subject to tax.

Very truly yours,

R G. Hamlin
Tax Counsel
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