Were freelance photographer charges to a Texas video production company taxable, and did camera ownership or an exempt client change the result?

Plain-English summary

A video production company hired freelancers including audio technicians, script writers, talent, and photographers and asked how Texas sales tax applied to the photographers.

The Comptroller said a freelance photographer's fee was not taxable when the person operated a video camera or another motion-picture camera; an exemption certificate could document that activity. A fee for operating a still-picture camera was taxable.

It did not matter whether the photographer used personal equipment or the production company's camera. It also did not matter that the final production was for an exempt organization: the production or post-production company was the end consumer of items bought to produce the master and had to pay tax on taxable purchases.

What this means for you

The type of camera work controlled the service result in this letter. Motion-picture camera operation was nontaxable, while still photography was taxable, regardless of who owned the camera or whether the ultimate client was exempt.

Common questions

Was freelance video-camera work taxable? No.

Could the company document that treatment? Yes, with an exemption certificate.

Was freelance still photography taxable? Yes.

Did equipment ownership change the result? No.

Did an exempt end client make the production company's purchases exempt? No. The letter treated the production company as the end consumer.

Citations and references

• The letter did not cite a numbered statute, regulation, or case.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9105L1115A12

Original ruling text

May 28, 1991

Dear **:

I am responding to your letter regarding the taxability of
services provided by free-lancers hired by your video production
company. The services provided by the individuals include audio
techs, script writers, talent, and photographers.

You understood that all these services are nontaxable except the
photographers, but have received conflicting answers from this
agency. Because of the conflicting answers, you have the follow-
ing questions. Responses immediately follow each question.

Should these free-lance photographers be charging us sales
tax?

Response: The fee is not taxable for services provided by a
free-lance photographer who operates a video camera or other
such motion picture camera. An exemption certificate may be
used to document this activity. However, the fee for a free-
lance photographer who operates a still picture camera is
taxable.

Does it matter if they sue their own equipment or use ours?

Response: No, it makes no difference if the camera being
operated belongs to the photographer or to your company.

Does it matter if the final production is for an exempt or-
ganization?

Response: No, as a production/post production company your
company is the end consumer of all items purchased to produce
the master. Your company must pay tax on all taxable items
even though you are producing the master for an exempt
entity.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

You may also write to Tax Administration Division, Comptroller
of Public Accounts.

Sincerely,

Tax Administration Division