California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 3 - Manufacturers, Producers, Processors › Section 1528 - Photographers, Photocopiers, Photo Finishers and X-Ray Laboratories

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Photographers
				  and Photocopiers.
Tax applies to sales of photographs, whether or not
					 produced to the special order of the customer. Tax applies to sales of
					 photocopies, whether or not produced to the special order of the customer, and
					 to charges for the making of photographs or photocopies out of materials
					 furnished by the customer or others. Except as provided in subdivision (b)(2),
					 no deduction is allowable on account of expenses such as travel time, telephone
					 calls, rental of equipment, or salaries or wages paid to assistants or models,
					 whether or not such expenses are itemized in billings to customers.
Tax does not apply to sales to photographers and persons
					 who make photocopies of tangible personal property which becomes an ingredient
					 or component part of photographs or photocopies sold, such as mounts, frames,
					 sensitized paper, and toner but does apply to sales to the photographer or
					 producer of materials used in the process of making the photographs or
					 photocopies and not becoming an ingredient or component part thereof, such as
					 chemicals, trays, films, plates, proof paper, cameras, and copy machine
					 drums.
See Regulation 1540,
Advertising Agencies and
					 Commercial Artists,
for transfers of photographic images by commercial
					 artists.
(b) Photocopying of
				  Records.
(1) General Rules. Tax applies to
				  sales of photocopies of records. Persons who make and sell, or obtain and sell,
				  photocopies of records to consumers are retailers of the photocopies whether
				  they make the photocopies themselves, hire a subcontractor to make the
				  photocopies, or acquire the photocopies for resale from the person who owns or
				  maintains the records. Tax applies whether or not the copies are made at the
				  business location of the retailer or at the location of the person who owns or
				  maintains the records. The tax applies to the entire charge for making and
				  selling, or obtaining and selling, photocopies, without deduction for expenses
				  incurred in obtaining access to the records, travel time, time spent in
				  selecting the particular records desired, the field service of photocopying or
				  microfilming the records, telephone calls, file setup charges, basic fees,
				  typing fees, document handling fees, or any other costs or expenses of filling
				  the customer's order.
(2) Service
				  Transactions. Merely because a fee is charged in connection with the transfer
				  of a photocopy of a record does not mean that the transaction is a sale
				  transaction under the Sales and Use Tax Law. If a person who owns or maintains
				  the records (recordholder) is required by law to furnish the photocopy upon
				  tender and payment of a fee, the transfer of the photocopies by that person is
				  not a sale. For sales and use tax purposes, that person is the consumer of the
				  photocopies transferred and charges by a photocopy company to the recordholder
				  for the photocopies are subject to tax.
(A)
				  Medical Records. Ordinarily tax does not apply to charges made by a hospital or
				  other health care provider (recordholder) for photocopying of medical records.
				  The transaction is regarded as a service transaction, and the fees are
				  nontaxable if the photocopies are furnished to the patient, or to someone
				  acting on behalf of the patient, or to the patient's representative, as
				  provided in Health and Safety Code section
				  123110(b).
				  Likewise, the fees are nontaxable if the photocopies are furnished in response
				  to a written authorization presented by an attorney or the attorney's
				  representative as provided in Evidence Code section
				  1158, or if
				  the photocopies are furnished as provided in subdivision (b)(2)(C) below. Tax
				  does apply, however, if the hospital or other health care provider is not
				  required by law to furnish photocopies but otherwise sells photocopies of
				  records for a price. Charges made by a photocopy company directly to the
				  requesting party for photocopies which, by agreement with the recordholder,
				  were made and furnished directly to the requesting party are taxable in their
				  entirety.
The preparation and service of a written authorization as
					 provided in California Evidence Code Section
					 1158 is a
					 nontaxable service. The tax does not apply to separately stated charges for
					 this service even though the written authorization is served in connection with
					 the performance of a contract to produce and deliver photocopies of
					 records.
(B) Public Records.
				  Tax does not apply to charges made by a public agency for photocopies of
				  records furnished pursuant to the California Public Records Act or local law,
				  ordinance, or resolution. Persons who obtain photocopies of public records from
				  public agencies and sell the photocopies are making retail sales and must pay
				  sales tax measured by their entire charge, including reimbursement of legally
				  required fees.
(C) Witness Fees.
				  Copying, witness, mileage or other fees which are charged by a person who
				  furnishes copies of records in response to a subpoena as provided in California
				  Evidence Code Section
				  1563 are not
				  subject to tax. Separately stated charges by a photocopy company for the
				  reimbursement of witness fees which were paid to the recordholder are not
				  subject to tax. Tax does not apply to separately stated fees, made by a person
				  who makes or acquires records for another for advancing payment of statutory
				  witness fees. Such fees, commonly identified as "check charges, are made to
				  cover the cost of providing the check, advancing moneys, and associated
				  bookkeeping costs. When a witness fee is charged, the "check charge" will be
				  regarded as part of the charge for a nontaxable service and not as a part of
				  the charge made for the tangible personal property.
(3) Preparation of Subpoena Duces Tecum. The
				  preparation and service of a subpoena duces tecum is a nontaxable service. The
				  tax does not apply to separately stated charges made for the service even
				  though the subpoena is served in connection with the performance of a contract
				  to produce and deliver photocopies of records.
(4) Typewritten Transcriptions and
				  Interpretation of Medical Records. The tax does not apply to a separately
				  stated charge made for providing a typewritten transcription of a medical
				  report or an interpretation of the contents of a medical record. However, the
				  tax applies to the fair retail value of any photocopies produced for the
				  customer in connection with the nontaxable service.