This guide will help you determine which photography products or services are taxable.

There are different kinds of photography products and services, such as the following:

• Aerial photography
• Architectural photography
• Event and party photos
• Holiday photos
• Model portfolios
• Passport photos
• Photo booth sales
• Portraits
• School photos
• Sonogram imaging (non-medical)
• Wedding photos

Whether a photography product or service is taxable depends on how the final product is delivered to the customer: in a tangible (physical) form or electronically.

Note: If the sale includes any products delivered in a tangible and an electronic format, then the entire amount billed to the customer is taxable.

Altering Services

The labor charge to alter a customer’s photo into a new or changed product is taxable.

Examples include:

• Red eye reduction
• Resizing
• Retouching
• Tinting

Printing Services

Printing services are taxable.

Examples include:

• Holiday greeting cards
• Memorabilia with the photo
• Original or duplicate photos
• Posters

Restoration Services 

The labor charge to restore a photograph to its original condition is not taxable. This does not include creating a replacement of the original photograph.

The sales price includes all charges necessary to create the taxable product.

The entire amount billed to the customer is taxable, even if services are separately stated because the end product could not exist without the labor and materials to create the images.

Exemptions

Photography sales to certain types of customers and for certain uses are not taxable.

You must charge sales tax unless the customer gives you a completed Form ST3, Certificate of Exemption. The customer must complete the following required sections on the form:

• Purchaser’s name and address
• Purchaser’s identification number
• Type of business
• Reason for exemption
• Signature

Keep the completed Form ST3 in your records.

Out-of-State Sales

Photography delivered to customers outside of Minnesota is not subject to Minnesota tax. No exemption certificate is required.

You must maintain records that show the items were shipped to a customer outside of Minnesota. Tax may be due in the state where the photography was delivered

Items you use to operate your photography business are taxable, unless an exemption applies. Several services are also taxable.

If you do not pay sales tax on a taxable purchase, then you owe use tax.

If you create or sell tangible (physical) products, you may purchase certain items for your business without paying tax by giving your vendor Form ST3, Certificate of Exemption.

The following purchases are not taxable:

• Items you buy for resale to your customers
• Materials or supplies you use to create a tangible product (industrial production)
• Equipment used primarily in Minnesota to create a tangible product (capital equipment)

Note: These exemptions do not apply when images are delivered electronically, and there is no transfer of a tangible product.

When filing your return, you must report all sales tax collected and use tax you owe.

The legal references and resources related to the photography industry are listed.