Photographic services exempt from use taxes

Services provided by photographers and commissioned portrait artists are now exempt from gross receipts under Act No. 2017-397. On Friday, May 26, Gov. Kay Ivey signed HB290 by Rep. April Weaver, R-Brierfield, into law. It was immediately effective.

Sitting fees, consultation fees and other services provided by photographers even when part of a transaction ultimately involving the sale of one or more photographs are now exempt from taxation as long as the exempt services are stated separately on the bill of sale or invoice. The law also specifies that neither the Alabama Department of Revenue nor local tax officials can seek payment for uncollected use taxes before Oct. 1, 2017. Use taxes collected and remitted on photographic services prior to that date also are not subject to a refund to the photographer or the taxpayers from which they were collected.

This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!

Reprints or republishing are welcomed but require permission. Contact us for permission.