Michigan Photographers - How do you handle sales tax?
To all you Michigan photographers out there, how do you handle the sales tax situation? Technically speaking, we are supposed to charge a tax on, say, a wedding package or sitting fee because the service leads to the sale of tangible items. But my research, based on examining pricing sheets of several dozen MI photographers, shows that very few actually do this, e.g. "MI tax applies to all packages" or "Before MI sales tax as required by law."
I live in Central Ohio. You know, where that college team that keeps kicking your butt in football is? ;-)
I called the State of Ohio Sales Tax people and was told (and no, I didn't get the persons name like I should have) the photography business is one of those strange businesses in Ohio that doesn't need to
charge sales tax for the shoot. Just on anything tangible that is sold from the shoot. In my situation, I charge for the shoot but include so many prints in the cost. I was told I needed to pay the tax on the prints that I deliver. I also sell prints online but that's handled by a company that is out of state so I'm not delivering anything, the out of state company is. Clients can also order more prints from my studio at a little cheaper rate. For those, I need to charge sales tax since I'm delivering a tangible product.
Individuals or businesses that sell tangible personal property to the final consumer need a sales tax license.
John; in many states you do charge sales tax on services; it is a line item on the customers invoice.Source: photo.net