701—211.14(423) Photography and retouching.
	211.14(1) Definitions. For purposes of this rule:
“Photography” means the art or process of capturing or producing still or moving images, films, or videos using any device designed to record or capture images, film, or video. Taxable sales associated with photography services include but are not limited to sitting or photoshoot fees and fees relating to taking or producing photographs or videos, including editing.
“Retouching” means the alteration, restoration, or renovation of a picture, film, video, image, artwork, likeness, or design.
	211.14(2) In general. The sales price of photography services and retouching services are taxable regardless of whether the service results in the production of tangible personal property or specified digital products.
Example 1: Standalone photography service. X operates a photography business where customers can purchase a half-hour photoshoot session for $50 and may purchase physical or electronic copies of any photographs taken during the photoshoot for $10 each. Y purchases a half-hour photoshoot from X for $50; however, after viewing the images, Y decides not to purchase any copies of any of the photographs. X must collect and remit sales tax and any applicable local option tax on $50, the cost of the photography service, even though Y decided not to purchase any of the resulting photographs.
Example 2: Photography service and sale of photographs. Same facts as Example 1, except that Y decides to purchase ten photographs for $10 each. X must collect and remit sales tax and any applicable local option tax on $150, the total cost of the $50 photography service and the $100 cost of the ten photographs. Here, the photography service is taxable and the photographs are taxable as the sale of tangible personal property if they are delivered in hard copy or as the sale of specified digital products if they are delivered electronically.
	211.14(3) Sourcing. More information about how various aspects of photography services may be sourced is available in 701—subrule 205.2(1).
This rule is intended to implement Iowa Code sections 423.2(6)“bo” and “bp.”
[ARC 6704C, IAB 11/30/22, effective 1/4/23]