Was a photographer's full charge taxable when only about 15 of roughly 100 shoe-catalog photographs were ultimately used?

Plain-English summary

A redacted buyer asked about photographs purchased for two yearly shoe catalogs. The photographer was described as simply a man with a camera who supplied only a studio, film and camera. Of approximately 100 photographs taken, 15 were ultimately used; the others were for light placement or were test shots.

The photographer maintained that tax applied to the entire charge, and Senior Tax Counsel agreed. Section 6051 applied sales tax to total gross receipts from retail sales. Section 6012(a) defined gross receipts without a deduction for material cost, labor, service cost, losses or any other expense.

The unused photographs therefore did not reduce the taxable measure. The letter did not allocate part of the charge to selected versus test images or identify a price; it simply treated the full amount received for making the photograph sale as taxable.

Source posture and live annotation

The source answers an August 6, 1991 letter but does not reproduce it or any underlying transaction record. It supplies no buyer or photographer identity, contract, shoe catalog, photograph, selection record, studio record, film, camera, price, invoice, cost breakdown, return, audit, assessment or later outcome. It accepts the buyer's approximate count and purpose descriptions without independent records.

The live 420.0175 annotation, in the 2026 revision of the Business Taxes Law Guide, retains the studio, film, camera, approximately 100 photos, about 15 used, test shots, entire taxable amount, section 6012(a) and September 24, 1991 date. It changes the source's two yearly catalogs to singular a catalog, changes singular light placement to light placements, and says section 6012(a) require the result. It omits the internal-request posture, photographer's asserted position, section 6051, the full no-deduction list, missing price and records, and absence of an applied outcome.

CDTFA's Annotated Legal Opinions collection says the letters are summarized as annotations and that statutory law controls whenever a statute and annotation conflict. The official one-page PDF has a clean native text layer and one small page-1 letterhead image rather than scanned text, so no OCR was required. Both fresh direct PDF downloads and both live-page downloads were byte-identical, duplicate default PDF text extractions matched, and the original-text section remains byte-identical to its committed version and fresh extraction after removal of only the extractor's terminal newline and form feed.

What this means for you

Commercial photographers and catalog businesses

Plan test and selection work as part of the taxable transaction when the customer buys the resulting photographs. Separately stating or internally valuing unused images would not create the deduction rejected by this letter. Keep the contract, image list, invoice and any genuinely distinct transaction records for current-law analysis.

Common questions

Q: Were only the 15 selected photographs taxable?

A: No. The letter included the photographer's entire charge for approximately 100 photographs.

Q: Why did unused test shots remain in the measure?

A: Section 6012(a), as quoted, allowed no deduction from gross receipts for material, labor, service, losses or other expense.

Q: Did the source identify the photographer's price?

A: No. It gives no total, per-photo rate or allocation.

Q: Was this an audit determination?

A: No. It was advice responding to the buyer's stated facts and supplies no return, audit, assessment or final tax result.

Citations and references

• California Revenue and Taxation Code section 6051 — cited for tax measured by total retail gross receipts
• California Revenue and Taxation Code section 6012(a) — quoted for no deduction based on materials, labor, services, losses or other expenses
• August 6, 1991 inquiry; contracts; catalogs; photos; selection records; prices; invoices; costs; returns; audits; assessments; and outcomes — described or implicated but not included

Verbatim support

From the official September 24, 1991 Senior Tax Counsel letter:

Out of approximately 100 photographs taken by the photographer, only 15 are ultimately used in the catalog. The remainder are taken for light placement or test shots.

The photographer is correct that tax applies to the total charge for the photographs.

The term “gross receipts” is defined to mean the total amount of the sale price of the retail sales of retailers without any deduction on account of the cost of the materials used, labor, or service cost, losses, or any other expense.

Although the photographer’s charge to you includes a charge for many photographs which are not used, the Sales and Use Tax Law requires the photographer to include in the taxable measure of his sale the entire gross receipts he receives for making the sale.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Live annotation: Annotation 420.0175
• Original supporting opinion: 420.0175 PDF

Original ruling text

420.0175

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 445-6450

September 24, 1991
REDACTED TEXT

Dear REDACTED TEXT:
This is reply to your August 6, 1991 letter regarding the application of sales tax to sales of photographs to you to use in publishing two yearly catalogs of shoes. You note that the photographer is simply a man with a camera. He provides only a studio, film, and camera. Out of approximately 100 photographs taken by the photographer, only 15 are ultimately used in the catalog. The remainder are taken for light placement or test shots. The photographer maintains that tax applies to his entire charge to you. You asked for our opinion. The photographer is correct that tax applies to the total charge for the photographs. Sales tax applies to the total gross receipts of the retail sales of retailers. (Rev. & Tax. Code § 6051.) The term “gross receipts” is defined to mean the total amount of the sale price of the retail sales of retailers without any deduction on account of the cost of the materials used, labor, or service cost, losses, or any other expense. (Rev. & Tax. Code § 6012, subd. (a).) Although the photographer’s charge to you includes a charge for many photographs which are not used, the Sales and Use Tax Law requires the photographer to include in the taxable measure of his sale the entire gross receipts he receives for making the sale. We hope this answers your question; however, if you need further information, feel free to write again. Very truly yours, Ronald L. Dick Senior Tax Counsel RLD:sr