Which of a photographer's purchases and charges — film, chemicals, equipment, printing, framing, sitting fees — are subject to New York sales tax?

Plain-English summary

Victor LaSala is in the business of photography and photographic printing. He buys film, photographic paper and chemicals, sometimes buys processing from outside labs, buys frames he resells with the finished product, and owns cameras, lenses and processing equipment. He asked how sales tax applies to those purchases and to his charges (printing, framing, and the photographer's service in the studio or on location).

The Department sorted each item by what it is and how it's used.

• Processing a customer's film vs. making a product. Developing negatives from film the customer furnished is a taxable service under § 1105(c)(2). But printing photos from negatives is producing tangible personal property for sale, and developing plus printing from the photographer's own film is entirely production for sale.
• Production equipment can be exempt (ST-121). Cameras, lenses and developing/processing equipment used directly and predominantly (over 50%) in developing his own film and printing photos for sale are exempt under § 1115(a)(12), purchased with an Exempt Use Certificate (ST-121). If he predominantly develops customers' film, the developing equipment doesn't qualify — but printing equipment, cameras and lenses still do.
• Things that end up in the finished product are bought for resale (ST-120). When prints are sold with the negatives transferred to the customer, film, an independent lab's processing, photographic paper and picture frames may be bought for resale with a Resale Certificate (ST-120). Chemicals that become actual detectable components of the finished print are likewise resale purchases (see the Department's photographic-chemicals guideline, TSB-M-79(4)S).
• Supplies that don't end up in the product get § 1105-B treatment. Film used only to develop the photographer's own negatives that aren't transferred to the customer is exempt under § 1115(a)(12)/§ 1105-B; chemicals that don't become detectable components are "supplies" subject to the § 1105-B phase-out (statewide tax phased out to exempt after March 1, 1981; the NYC tax is unaffected).
• Charges: printing and framing are taxable under § 1105(c). A charge for the service of taking a photograph (studio or location) is not taxable if the customer buys no photograph — but if that charge is a component of the sale of a negative, slide or print (whether or not separately stated), the whole price is a taxable retail sale under § 1105(a).

What this means for you

A photography business is several tax categories at once — sort your inputs and outputs. Making prints for sale is production, which unlocks the § 1115(a)(12) machinery exemption for the gear you use to do it. Materials that physically become the product you hand the customer (paper, frames, film transferred with the prints, detectable chemicals) are bought for resale. Two different certificates apply: ST-121 for exempt-use production equipment, ST-120 for resale materials.

Whose film it is changes the answer. Developing a customer's film is a taxable service (§ 1105(c)(2)); developing your own film as part of making prints for sale is production. If most of your developing is of customers' film, your developing equipment won't get the production exemption — but your printing equipment and cameras still will.

A pure sitting fee can be tax-free — but don't let it ride along with a sale. If a client pays only for your time and buys no photo, that service charge isn't taxable. The moment that charge is part of selling a print, slide or negative, it folds into a taxable retail sale and tax applies to the entire amount, separately stated or not.

Common questions

Q: Can I buy my cameras and darkroom equipment tax-free?
A: If they're used over 50% in producing photographs for sale (developing your own film and printing), yes — with an Exempt Use Certificate (ST-121) under § 1115(a)(12). Equipment used mainly to develop customers' film doesn't qualify.

Q: What can I buy for resale?
A: Items that become part of the finished product you transfer to the customer — film (when negatives go to the customer), outside lab processing, photographic paper, frames, and chemicals that are detectable in the print — using a Resale Certificate (ST-120).

Q: Is my sitting/session fee taxable?
A: Only if the customer buys a photograph. A charge purely for taking the picture, with no photo purchased, isn't taxable; but if it's part of selling a print, slide or negative, the whole charge is taxable.

Citations and references

Statutes, regulations and guidance:

• Tax Law § 1105(a) — retail sales; resale excluded
• Tax Law § 1105(c)(2) — tax on processing customer-furnished property
• Tax Law § 1115(a)(12) — production-machinery exemption (excludes short-life parts/tools/supplies)
• Tax Law § 1105-B — phase-out of statewide tax on production parts/tools/supplies (exempt after March 1, 1981; not NYC)
• 20 NYCRR 528.13(c); Forms ST-120 (resale), ST-121 (exempt use); TSB-M-79(4)S (photographic chemicals)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1981.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a81_41s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-81(41)S
Sales Tax
October 28, 1981

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S810422A

On April 22, 1981, a Petition for Advisory Opinion was received from Victor LaSala, 85
Peconic Drive, Massapequa, New York 11758.
This petition raises two issues: (1) whether the purchase of the following items by Petitioner
are subject to sales tax-film used in shooting photo assignments, processing services of another
laboratory; paper and chemicals used in producing the finished print; frames purchased for resale;
cameras, lenses and processing equipment; and (2), whether Petitioner's charges for the following
services are subject to sales tax-photographic printing; the framing of photo prints; and
photographer's services, both in his studio and on location.
Petitioner is in the business of photography and photographic printing. Petitioner purchases
film to use in photographic assignments, thereafter furnishing his customers with either the finished
prints or slides, or the original negatives, or both.
Petitioner makes prints from negatives and slides some of which he produces and some of
which are supplied by his customers. Petitioner purchases photographic paper and chemicals which
he uses to produce prints for his customers. In some instances Petitioner purchases processing
services from independent laboratories. Petitioner also purchases frames which are resold as part of
the finished product.
Section 1105(a) of the Tax Law imposes a tax on the receipts from retail sales of tangible
personal property, except when purchased for resale. Similarly, Section 1105(c) imposes a tax on
certain services, including the processing of tangible personal property which has been furnished by
the customer, except when such services are purchased for resale.
Section 1115(a)(12) of the Tax Law exempts from tax: "Machinery or equipment for use or
consumption directly and predominantly in the production of tangible personal property . . . for sale,
by manufacturing, processing . . . but not including parts with a useful life of one year or less or tools
or supplies used in connection with such machinery, equipment or apparatus." The Sales and Use
Tax Regulations provide that "Machinery or equipment is used predominantly in production, if over
50% of its use is directly in the production phase of a process." 20 NYCRR 528.13(c)
Section 1105-B of the Tax Law provides a phase-out of the statewide tax on purchases of
certain parts, tools and supplies used or consumed in production. Subdivision (a) of such section
states:" . . . receipts from the retail sales of parts with a useful life of one year or less, tools, supplies
. . . for use or consumption directly and predominantly in the production of tangible personal
property . . . for sale by manufacturing, processing . . . shall be . . . exempt from such tax on and after

JAMES H. TULLY., COMMISSIONER
TP-8 (4/80)

LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

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Sales Tax
October 28, 1981
March first, nineteen hundred eighty-one." Similarly, Section 1105-B provides that with respect to
purchases of such items made between September 1, 1980 and February 28, 1981, the statewide tax
shall be two per cent. The tax imposed within the City of New York is not affected by this phase-out
and these items continue to remain exempt from taxes imposed by all other localities.
Petitioner's development of negatives from film furnished by the customer constitutes the
rendition of a service subject to tax pursuant to section 1105(c)(2) of the Tax Law; however, the
subsequent printing of photographs from such negatives represents the production of tangible
personal property for sale. When Petitioner develops negatives from its own film and prints
photographs therefrom, the entire process constitutes the production of tangible personal property
for sale.
Accordingly, cameras, lenses, developing equipment and processing equipment purchased
by Petitioner fall within the ambit of section 1115(a)(12), provided the equipment is used directly
and predominantly (more than 50% of use) in developing negatives from Petitioner's own film and
printing photographs for sale. In this instance, Petitioner may purchase such equipment tax exempt
by issuing a properly completed Exempt Use Certificate (ST-121) to the supplier. However, if
Petitioner is predominantly developing negatives from film furnished by its customers, the
development equipment is not eligible for tax exemption pursuant to section 1115(a)(12). In this
situation, only the equipment used in the printing of photographs and cameras, lenses and related
equipment may be purchased tax exempt by issuance of a properly completed Exempt Use
Certificate (ST-121) to the supplier.
Petitioner's purchases of items of tangible personal property which become a physical
component part of the final product transferred to customers may be made tax exempt, for resale,
by issuance of a properly completed Resale Certificate (Form ST-120) to the supplier, in the case of
the sale of prints with which the negatives are also transferred te the customer, the following may
be purchased for resale, film, processing services of an independent laboratory, photographic paper
and picture frames.
Film used by Petitioner to develop its own negatives which will not be transferred to the
customer as part of the sale of photographs is exempt pursuant to sections 1115(a)(12) and 1105-B
of the Tax Law.
Similarly, Petitioner's purchases of chemicals which become actual detectable physical
components of the finished product which is ultimately transferred to the customer may be made tax
exempt, for resale. A listing of photographic products has been prepared by the Department of
Taxation and Finance for use as a guideline to assist persons in the photography industry in
determining whether or not specific chemicals are transferred to the customer with the finished
product. See Technical Services Bureau memorandum TSB-M-79(4)S. Chemicals which do not
become actual detectable physical components of the finished product transferred to the customer
are classified as supplies pursuant to the manufacturing exemption provided by Section 1115(a)(12).
Thus, the provisions of Section 1105-B apply to the purchase of such chemicals.
Petitioner's charge for the printing and framing of photographs is taxable pursuant to Section
1105(c). Petitioner's charge for the service of taking a photograph, either in the studio or on location,
is not taxable if the customer does not purchase a photograph. However, when such charge, whether

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Sales Tax
October 28, 1981
or not separately stated, is a component of the sale of a negative, slide or finished print, Petitioner
is making a retail sale of tangible personal property pursuant to Section 1105(a) and tax must be
collected on the total price therefor.

DATED: October 7, 1981

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau