How do I calculate sales tax on photo processing services?

When a service person only provides photo processing service on a transaction (e.g., sales made by drug stores and drop-off photo labs), Illinois law requires the service person to collect sales tax on 100 percent of the selling price of the service.

When a service person provides photo processing service in conjunction with other services and separately states the charges for photo processing for photo processing, Illinois law requires the service person to collect sales tax on 100 percent of the separately stated selling price for the photo-processing portion of a bill (e.g., the charge for pictures, slides, negatives, or motion pictures other than motion pictures for commercial exhibition).

When a service person provides photo processing service in conjunction with other services and does not separately state the charges for photo processing, Illinois law requires the service person to collect sales tax on:

  • 10 percent of the total bill or the cost price of materials, whichever is greater, when a professional photographer provides the service or
  • 50 percent of the total bill when a professional photographer does not provide the service.

See 86 Ill. Admin. Code Section 130.2000.

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