Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-10 - SERVICES SUBJECT TO TAX - PRINTING AND PHOTOGRAPHY, JOB PRINTERS, PRINTERS AS MANUFACTURERS

Current through Register Vol. 49, No. 6, June, 2024
A. The
				tax must be collected and remitted on the service of printing of all kinds,
				types and characters, including the service of overprinting. All businesses
				engaged in providing such services, including job printers and others, must
				collect and remit the applicable tax upon the gross receipts or gross proceeds
				derived from providing such services.
B. Job printers must collect and remit tax
				upon the gross proceeds derived from the furnishing of such a service to a
				consumer without any deduction for any costs or expenses incurred in the
				furnishing of such services.
Example: Customer provides information to job printer to
				  print catalogs for customer. Job printer should collect and remit tax on the
				  amount invoiced to customer. The job printer should pay tax on all materials
				  used and consumed in performing the taxable service, such as the ink, paper,
				  and all other materials used in printing the catalogs.
C. Printers who print articles of commerce
				for sale to consumers are considered to be manufacturers. Items used by a
				printer who is a manufacturer that become a recognizable (capable of being
				recognized), integral part of the printed product may be purchased by the
				printer exempt as a sale-for resale. (See GR-53.) Printers must pay tax on
				items used in the printing process that do not become a recognizable, integral
				part of the printed product.
D. The
				tax applies to the service of photography of all kinds. State and local sales
				tax apply to photography services based on where the customer receives the
				service. The photography service, including the sitting, is received when the
				customer views the product of the service (i.e. proofs, pictures, etc.).
Example 1: A Fayetteville photographer is hired to photograph
				  the senior pictures of a Eureka Springs student. The photographer takes the
				  pictures in Eureka Springs, but the pictures are picked up at the
				  photographer's studio in Fayetteville. Arkansas state sales tax, as well as the
				  City of Fayetteville and Washington County sales tax will apply because the
				  customer receives the product in Fayetteville. (If the photographer charged a
				  separate sitting fee, then Arkansas state, City of Fayetteville, and Washington
				  County sales tax will also apply to the sitting fee.)
Example 2: A Fayetteville photographer is hired to photograph
				  the senior pictures of a Eureka Springs student. The photographer takes the
				  pictures in Eureka Springs, and makes the proofs available for viewing on its
				  website. The applicable local tax is the first of the following locations known
				  by the photographer: the address of the customer, the billing address of the
				  customer, or the address of the photographer.
Example 3: A Conway photographer is hired to videotape a
				  wedding in Little Rock and the wedding dance in Vilonia. The videotape is
				  mailed to the customer's home in Mayflower. Arkansas state sales tax, as well
				  as the City of Mayflower and Faulkner County sales tax will apply.
Example 4: A Fayetteville photographer is hired by a
				  Bentonville resident to photograph pictures in Texas. The photographer takes
				  the pictures in Texas, and per his customer's instruction, mails the proofs to
				  Little Rock. Arkansas state sales tax, as well as the City of Little Rock and
				  Pulaski County sales tax will apply.
Ark. Code Ann. §§
											26-52-301(4);
					 26-52-402