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I have a photography business in LA which will offer a package which includes services- as well as digital photos on a CD. Should sales tax be collected?

Full Question: I am starting a photography business in Louisiana. I will offer a package which includes my service as well as digital photos on a CD. I want to know if sales tax is collected on both parts or just on the CD which is what is actually being purchased. Two charges are involved: 1) Charge for my labor in shooting the pictures 2) Charge for the resulting digital pictures delivered on a CD to the customer. Are both taxable in Louisiana?

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Answer:

Diane Yetter photoLouisiana sales tax is imposed on retail sales of tangible personal property and on the furnishing of specified services. Taxable services include the furnishing of printing or over-printing, lithograph, multilith, blue printing, photostating, and other similar services of reproducing written or graphic matter. When these activities result in the production of tangible personal property, they are taxable as sales of tangible personal property. Photographs have intrinsic value and the true object of what your customers are buying is the CD with the photographs. As such, the charges for the photography services and the digital pictures provided to the customer are subject to Louisiana sales tax.

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