State and Local Tax (SALT) attorney Bruce Ely was quoted in State Tax Notes regarding a ruling from an Alabama appellate court that determined a commercial photography company was not required to collect sales and use tax. The Department of Revenue had assessed Omni Studio $27,000 in sales and use tax, interest and penalties based on its sales of photographs to commercial and noncommercial clients.
“There are a number of appeals and audits awaiting the outcome of this case, so, if I were a betting man, I’d bet the [DOR] will petition for certiorari to the Alabama Supreme Court in order to get a final answer and perhaps further clarification in this murky area of sales tax law,” said Ely.
The complete article, “Photo Sales Are Incidental to Photo Services, Alabama Appellate Court Says,” first appeared in State Tax Notes on May 3, 2016. (login required)