Does a freelance photographer charge Kansas sales tax on mileage and telephone charges billed along with the photography fee?

Plain-English summary

A freelance photographer who "sometimes photograph[s] ball teams for a local newspaper" asked whether it was correct to charge sales tax on all of its billed charges. The photographer invoices the newspaper three ways: "(1) A set fee per school for photographing the school's ball team," "(2) A set fee per mile for mileage," and "(3) For actual long distance telephone charges" — then totals the fees and charges sales tax on the sum. The newspaper questioned the tax on mileage and expected to question the tax on long distance.

The Department's answer. "[T]he Department of Revenue has determined a photographer is a retailer for purposes of the Kansas retailer's sales tax act. Sales tax is due on the gross receipts received by a photographer for their services." Crucially, "[t]his is true regardless of how the services are reflected on the bill or invoice to the customer, (i.e. whether charges are separately stated or combined in a total sum or fee)." So the mileage and long-distance charges are part of the photographer's taxable gross receipts, even though they look like reimbursed expenses.

The holding. "[Y]our way of charging and collecting sales tax is correct" — tax on the full total, including mileage and telephone charges.

Bottom line: for a Kansas photographer, everything billed to complete the job is part of taxable gross receipts. Breaking out mileage or phone costs as separate line items does not make them nontaxable; the whole invoice is subject to sales tax.

What this means for you

Photographers and videographers

You are a retailer for Kansas sales tax, and tax applies to your full gross receipts — the shoot fee plus any mileage, travel, phone, or similar charges you pass to the customer. Separately itemizing those costs does not exempt them; charge tax on the total.

Any service billed with pass-through expenses

The lesson generalizes: when a taxable seller re-bills its own costs (mileage, phone, materials) to the customer, those charges are usually part of the taxable base. Don't assume "expense reimbursements" are automatically nontaxable.

Customers questioning the tax

A customer may push back on tax added to mileage or phone charges, but the Department's position is that these are part of the photographer's taxable gross receipts. Collecting and remitting tax on the full amount protects you on audit.

Common questions

Q: Is a photographer's fee taxable in Kansas?
A: Yes. "[A] photographer is a retailer for purposes of the Kansas retailer's sales tax act," and "[s]ales tax is due on the gross receipts received by a photographer for their services."

Q: Are mileage and phone charges taxable too?
A: Yes. Tax applies "regardless of how the services are reflected on the bill or invoice" — separately stated or combined. Mileage and long-distance charges are part of the taxable gross receipts.

Q: Does itemizing expenses separately avoid tax?
A: No. Whether charges are "separately stated or combined in a total sum or fee," the full amount is taxable. The photographer's practice of taxing the total was confirmed correct.

Citations and references

• Photographer as retailer / gross-receipts rule — the Department treats a photographer as a retailer whose entire gross receipts for services are taxable, however the charges are itemized; the ruling states this position without citing a single subsection.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-182

Original ruling text

Private Letter Ruling

Body:

Office of Policy and Research

August 23, 1999

XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

Re: Kansas Sales Tax

Dear XXXXX:

Your correspondence of August 5, 1999, has been referred to me for response. Thank you for your inquiry.

Your letter states you are a freelance photographer, and that you sometimes photograph ball teams for a local newspaper. You invoice the newspaper:

1. A set fee per school for photographing the school’s ball team.
2. A set fee per mile for mileage.
3. For actual long distance telephone charges.

You then total the above fees and charge sales tax on the sum of the fees and charges. You indicate the newspaper is questioning the sales tax on mileage and, since it will be a new charge, will probably question the sales tax on the long distance. By your letter you seek our advice as to whether you are correct in charging the newspaper sales tax on these charges.

Please be advised the Department of Revenue has determined a photographer is a retailer for purposes of the Kansas retailer’s sales tax act. Sales tax is due on the gross receipts received by a photographer for their services. This is true regardless of how the services are reflected on the bill or invoice to the customer, (i.e. whether charges are separately stated or combined in a total sum or fee). As a result, your way of charging and collecting sales tax is correct.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.

Sincerely,

Jim Weisgerber
Attorney
Tax Specialist

JW:jw

Date Composed: 09/10/1999 Date Modified: 10/11/2001

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