What is taxable in California?

I've been in the process of setting up my business structure and have read a few items

from the California State Board of Equalization regarding the tax laws but am wondering if

there is an easier way to get this information.... now that's where you guys come in!

 

My question is: What gets charged sales tax to a wedding/portrait client in CA? I assume

that all tangible property such as albums or prints would be taxed, but how about sitting

fees or fees for a wedding shoot? I don't want to charge taxes when none should be due...

Anyone in CA with some quick answers? Thanks!

In California it's all taxable.

 

<a href="http://www.boe.ca.gov/pdf/pub68.pdf">Tax Tips for California

Photographers</a>

When I got audited in California; they busted me on the tax; penality; and interest on all the photo items I bought out of state by mailorder. Film; albumns; lens caps; lenses; etc. At that time long ago; they didnt tax photo paper; IF I was the chap making the prints; which were then taxable to my clients. They basically want to tax everything; the total tax varies by the county.<BR><BR><BR> Alot of folks will try to get you not to charge any tax. When you get audited; figure on all of them not being your buddy anymore to pay the past taxes; interest; and penalities. They might as well be living in Mongolia; you will take almost all the hit. Figure doubling the taxes; ie an 8 % tax is now a 16% tax when you get busted. <BR><BR><BR>The auditors are a dry bunch; they live to find what you think is a trivial error. When errors are found; they dig more in that area.<b> Get the latest set of rules; get an accountant; pay the taxes; and focus on Photography.</b><BR><BR> Many states have you subdivide you sales tax monthly form with non taxed; and non taxed out of state sales too. A high ratio of non-taxed to taxed sales is a warning flag that can trigger an audit. <BR><BR>Folks will give you a bunch of baloney ; ie bad "non-tax numbers"; to avoid paying sales taxes. The auditors are non impressed with boat trailer numbers; dog tag numbers; or valid numbers that are not applied correctly. Many "contractor types" will use a tax number and claim all their purchases are tax free. When audited; the auditor will collect the tax again from you; unless you can recollect the tax from a 3 year sale. This is basically impossible to do. <BR><BR>Again the auditors place the burden on you for filtering out a bogusly applied no tax sale; dog tag number; or a "i am going to resale it again customer"; with no tax id. It is a big game; folks will cry and moan to get you to drop the sales tax; you are then holding the audit bag. <BR><BR>

Tom is right--basically everything is taxable, including labor fees.

So basically, everything I charge the client gets sales tax added onto it? I had thought that

it was just tangible items like albums and prints.

 

Thanks Tom for the link.

I'm glad somebody brought this up, as I've been wondering about it too. Thanks for the

pointer to the PDF from the CA board of equalization.

Their justification is that the photographs are a product. Even the photography, lab work, etc. are just considered part of the final product.