Ezel / Tax Rulings / NY
NY TSB-A-09(57)S Sales Tax 2009-12-07

Are receipts from renting photo studio space subject to New York sales tax?

Short answer: No -- renting photo studio space is the rental of real property, which is not subject to New York sales or use tax, as long as the charge is solely for the space. But if the studio rental is combined with tangible personal property (cameras, lighting, etc.) for a single charge, the entire charge becomes taxable as a sale of tangible personal property. The studio-space charge stays nontaxable only if it is separately stated from other charges and reasonably reflects the true value of using the space.
Currency note: this ruling is from 2009
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official New York State Department of Taxation and Finance Advisory Opinion (TSB-A), issued by the Office of Counsel at a taxpayer's request. It is limited to the facts set forth in it and binds the Department only with respect to the petitioner to whom it was issued, and only if that petitioner fully and accurately described all relevant facts; another taxpayer cannot rely on it. It reflects the law, regulations, and Department policy in effect when issued and may since have changed. Taxpayer-identifying details are redacted. New York State and local sales taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice. Consult a licensed New York tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked at the bottom of this page, or PDF in the sidebar) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The petitioner offers equipment rental, complete digital solutions, gallery space, and nine full-service photographic studios (each with a window-curtain system, white walls, and cement floor). It has published rates for the studios and separately rents equipment such as cameras and lighting, and its invoices itemize the studio-rental fee. It asked whether its receipts from renting photo studio space are subject to sales tax.

The Office of Counsel concluded the studio-space rental is not taxable -- it's a rental of real property.

  • Renting real property (the studio) is not a taxable transaction. Fees for studio time are not subject to New York State and local sales/use tax if they are solely for the rental of the real property (following Soundtrack NY, Stachura, Sigma Sound Studios, and others).
  • Bundling flips it. If the petitioner provides both studio space and tangible personal property for a single charge, the entire charge is taxable as receipts from the sale of tangible personal property.
  • Separately stating saves the exemption. If the nontaxable studio-space charge is stated separately from all other charges and is reasonably related to the true value of using the studio, that space charge stays nontaxable.

What this means for you

Studio owners and rental venues

Charging only for the space keeps the rental nontaxable. The risk is bundling -- a single "studio package" price that sweeps in cameras, lights, or other equipment makes the whole thing taxable. Itemize the real-property rental separately and keep that figure realistic relative to the value of the space.

Photographers and producers renting space

A clean space-only rental shouldn't carry sales tax. If your invoice lumps the room together with gear for one price, expect tax on the full amount.

Common questions

Q: Why isn't studio rental taxable?
A: It's a rental of real property, which isn't one of the things New York's sales tax reaches.

Q: What makes a studio rental taxable?
A: Combining the space with tangible personal property (equipment) for a single charge -- then the entire charge is taxed.

Q: How do I keep the space charge tax-free?
A: State it separately from equipment and other charges, and make sure it reasonably reflects the true value of using the studio.

Citations and references

  • Tax Law section 1105 (sales tax on tangible personal property and enumerated services)
  • TSB-A-04(26)S (Debra Horn Stachura; real property rental not taxable)
  • TSB-A-98(33)S (CAV Corp/Soundtrack NY; separately stated studio space)
  • TSB-A-97(44)S (Salomon & Leitgeb CPAs)
  • TSB-A-87(25)S (Sigma Sound Studios)

Source

Original ruling text

New York State Department of Taxation and Finance

TSB-A-09(57)S
Sales Tax
December 7, 2009

Office of Counsel
Advisory Opinion Unit
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S090817B

On August 17, 2009, the Department of Taxation and Finance received a Petition for Advisory Opinion
from name and address redacted. Petitioner asks whether its receipts for the rental of photo studio space are
subject to sales tax. Petitioner’s receipts are for the use of real property; therefore, they are not subject to sales
tax.
Facts
Petitioner provides equipment rental and complete digital solutions for both in-house and location photo
shoots, as well as gallery space, and nine full service photographic studios. Every studio has a complete
window curtain system, white walls, and cement floor. Petitioner has published rates for the use of different
studios. It will also rent out equipment such as cameras and lighting at standard rates. Petitioner’s sales invoices
itemize the fee for a studio rental.
Analysis
The rental of real property such as a photographic studio is not subject to New York State and local
sales and use taxes. Therefore, the fees paid for studio time are not subject to New York State and local sales
and use taxes if such fees are solely for the rental of real property. See Debra Horn Stachura, Adv Op Comm
T&F, November 22, 2004, TSB-A-04(26)S; CAV Corp dba Soundtrack NY , Adv Op Comm T&F, May 20,
1998, TSB-A-98(33)S; Salomon & Leitgeb CPA's, LLP, Adv Op Comm T&F, July 23, 1997, TSB-A-97(44)S;
Sigma Sound Studios, Adv Op Comm T&F, October 1, 1987, TSB-A-87(25)S; Petition of Protape, Inc., State
Tax Commission, October 23, 1981, TSB-H-81(191)S. However, if Petitioner provides both studio space and
tangible personal property for a single charge, the entire charge will be subject to sales tax as receipts from the
sale of tangible personal property. However, if the nontaxable charges for the studio space are stated separately
from all other charges on the bill or invoice and the studio space charges are reasonably related to the true value
of the use of the studio, then those charges would not be subject to sales tax. CAV Corp dba Soundtrack NY,
supra.

DATED: December 7, 2009

NOTE:

/S/
Jonathan Pessen
Director of Advisory Opinions
Office of Counsel

An Advisory Opinion is issued at the request of a person or entity. It is limited to the
facts set forth therein and is binding on the Department only with respect to the person
or entity to whom it is issued and only if the person or entity fully and accurately
describes all relevant facts. An Advisory Opinion is based on the law, regulations, and
Department policies in effect as of the date the Opinion is issued or for the specific time
period at issue in the Opinion.