Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-140 - Photofinishers and photographers

Current through Register Vol. 24-14, July 15, 2024
Business and Occupation Tax
Retailing.
The gross proceeds of all sales taxable
				under the retail sales tax are taxable under the retailing
				classification.
Wholesaling.
Taxable under the wholesaling
				classification upon the gross proceeds from sales for resale.
Manufacturing.
Photofinishers who produce
				negatives, prints, or slides in Washington and who transfer or deliver such
				articles to points outside this state are subject to business tax under the
				manufacturing classification upon the value of products (see Rule 112) [WAC
				458-20-112 ] and are not subject
				to tax under the retailing or wholesaling classification.
Processing for hire.
Photofinishers who develop
				film for others and who make delivery of the film to points outside the state
				are subject to business tax under the processing for hire classification upon
				the total charge for the work done. It is immaterial that the customers are
				located outside the state or that the film was sent in from outside the state
				for processing.
Service.
Taxable under the service and other
				activities classification upon gross income from sales to publishers of
				newspapers, magazines and other publications of the right to publish
				photographs.
Retail Sales Tax
Photofinishers.
Photofinishers developing films
				and selling to consumers the prints made therefrom are making taxable retail
				sales, and the retail sales tax must be collected upon the full charge made to
				the customer. Photofinishers developing films and selling to other than
				consumers the prints made therefrom are sales for resale and not subject to the
				retail sales tax.
Sales by supply houses to photofinishers of paper upon which
				prints are made and of chemicals which are to be used in making the prints are
				sales for resale and are not taxable under the retail sales tax. Sales by
				supply houses to photofinishers of equipment and materials which do not become
				a component part of the prints are taxable under the retail sales tax.
Portrait and commercial photographers.
Photographers who make negatives on special order and sell photographs
				to customers (other than dealers for resale) must collect the retail sales tax
				upon such sales.
Sales by supply houses to a portrait or commercial photographer
				of the paper upon which such photographs are printed are not taxable because
				such material becomes an ingredient of the final product sold for consumption.
				Sales of chemicals, such as developing agents, fixing solutions, etc., for use
				in such process are also nontaxable. However, sales to a photographer of
				materials and equipment used in processing, whenever such materials do not
				become a component part of the final photograph or are not chemicals used in
				processing are taxable under the retail sales tax.
Sales to consumers by photographers of pictures, frames, camera
				films and other articles are subject to the retail sales tax.
Sales by photographers of the right to publish photographs are
				primarily licenses to use and not sales of tangible personal property. Such
				sales are not subject to the retail sales tax.
Photographers tinting and coloring pictures or prints belonging
				to customers are making retail sales upon which the retail sales tax applies to
				the total charge made therefor. Sales of oil and water colors to a photographer
				for use in tinting and coloring pictures or prints belonging to a customer are
				sales for resale and are not subject to the retail sales tax.
Statutory Authority:
				  RCW
				  82.32.300. 83-07-034 (Order ET 83-17), §
				  458-20-140, filed 3/15/83; Order ET 70-3, § 458-20-140 (Rule 140), filed
				  5/29/70, effective 7/1/70.