Is a glamour photography studio's session fee (covering wardrobe, makeover, and a private photo session) taxable, even if the customer receives no tangible personal property at the session and only orders photographs — if ever — at a later date?

Subject

Glamour Photography Session Fees (Wardrobe, Makeover, Private Photo Session) Are Taxable As Part Of The Sale Of Photographs

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9306L1243G03

Plain-English Summary

This is a June 22, 1993 letter ruling from the Comptroller's Tax Administration Division, responding to a glamour photography studio's question about whether its session fee is taxable.

The studio charges a $39.95 session fee that covers wardrobe and accessories, a makeover of the person being photographed, and a private photo session. According to the studio's letter, the customer receives no tangible personal property at the session itself — they may order actual photographs either at the time of the session or later.

The Comptroller ruled that the session fee is taxable because the wardrobe, makeover, and photo-session services are part of the sale of whatever photographs, image copies, negatives, or proofs are ultimately sold — whether that sale happens at the session or later — under Tax Code Sec. 151.007(b), which includes a service that is part of a sale in the taxable sales price. So if the studio doesn't collect tax at the initial session because no tangible personal property is transferred yet, it must collect sales tax on the session fee once the customer later orders tangible personal property (photographs).

The Comptroller also looked into industry practice at other photography studios and found that customers are sometimes given black-and-white computer printouts of the session — to show a spouse or loved one, or to help choose a future order package — even if they don't buy prints right away. The ruling states that handing over these computer images counts as a transfer of tangible personal property, which means the session fee is taxable even when the customer makes no additional purchase.

The Comptroller noted this opinion is based on the facts presented, and could change if the facts are different.

What This Means For You

If you run a glamour photography or similar studio

Session fees that include non-tangible services (wardrobe, makeover, photography time) are not automatically tax-free just because nothing physical changes hands at the session. If those services are a prerequisite to, or part of, a later sale of photographs, negatives, proofs, or image copies, the session fee becomes part of the taxable sales price of that later sale.

If you don't collect tax at the time of the session

You are not off the hook — you must collect sales tax on the session fee at the point the customer actually orders tangible personal property (such as prints), even if that happens well after the original session.

If you give customers preview printouts or images

Handing a customer any tangible item from the session — even a black-and-white computer printout meant only to help them decide on a future order or to show someone else — is treated as a transfer of tangible personal property. That alone can make the session fee taxable, even if the customer never places a further order.

Q&A

Q: Is the glamour photography session fee taxable?
A: Yes. The Comptroller ruled that the session fee (covering wardrobe, makeover, and the photo session) is part of the taxable sale of any photographs, image copies, negatives, or proofs sold at the session or later, under Tax Code Sec. 151.007(b).

Q: What if the customer receives no tangible personal property at the session?
A: If the studio doesn't collect tax at the initial session because nothing tangible is transferred, it must collect sales tax on the session fee once the customer later orders tangible personal property.

Q: Does giving a customer a black-and-white computer printout of the session change the answer?
A: Yes — the ruling states that transferring these computer images is considered a sale of tangible personal property even if the customer makes no additional purchase, which makes the session fee taxable.

Q: What statute does the ruling rely on?
A: Texas Tax Code Sec. 151.007(b), which provides that the total amount for which a taxable item is sold includes a service that is part of the sale.

Q: Did the Comptroller research how other photography studios operate?
A: Yes. The Comptroller contacted another photography outlet and studios operated by other entities to understand pricing and process in the field, including the practice of letting customers view session results on a monitor before purchasing.

Q: Can the taxpayer rely on this ruling if its facts are different?
A: No. The letter states the opinion is based on the facts presented, and that the opinion may change if there are additional or different facts.

Original ruling text

June 22, 1993

Dear *****:

Thank you for your letter of May 28, 1993, concerning the taxability
of glamour photography session fees.

Your company operates glamour studios that, for a session fee of
$39.95, provides wardrobe and accessories, a make over of the subject
to be photographed, and a private photo session. Your letter stated
that the customer receives no tangible personal property. The customer
may then or at a later date order photographs.

Tax Code Section 151.007 (b) states that the total amount for which a
taxable item is sold includes a service that is a part of the
sale. The above-mentioned services performed are part of the sale of any
photographs, image copies, negatives, or proofs sold at the time of the
session or at a later date. If your firm does not collect tax upon an
initial session as no tangible personal property is transferred and a
customer later orders tangible personal property, the sales tax must be
collected on the session fee at that time.

I contacted an ** outlet and ** photography studios
operated by other entities to better understand the pricing and processes
utilized in this field. Apparently, the session results may be viewed on
a monitor before purchasing. A customer that does not order at the time
may be given black and white computer printouts of the session to show to
a spouse or loved one, or simply use to choose future order packages.
The transfer of these computer images will be considered the sale of
tangible personal property even when the customer does not make
additional purchases. The session fee would be taxable.

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

You may call me toll free at 1-800-531-5441, ext. 5-0613. The direct
line is 512/475-0613. You may also write to Tax Administration
Division, Comptroller of Public Accounts.

Sincerely,

Kevin Koller
Tax Administration Division

NOTE: Previous Accession Number 9308007L.3 and/or 9308007L