HB250 Alabama 2015 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2015

Title

Commercial photographers, exempt from state sales tax, Revenue Department promulgate rules, Creative Professionals Small Business Tax Protection Act

Summary

HB250 would grant sales tax exemptions to commercial and other photographers in Alabama and let the Revenue Department set rules to implement this tax treatment.

What This Bill Does

The bill would provide state sales tax exemptions for certain photography services and allow the Department of Revenue to establish rules to administer the exemptions. It aims to treat commercial photography services like other non-taxable advertising-related services, clarifying which fees are not taxable. It also defines key terms (advertising agencies, commercial artists, finished work product, non-commercial artists, preliminary art, services, tangible products) and sets out which fees and charges are non-taxable, along with record-keeping requirements and an effective date.

Who It Affects

• Commercial photographers and photography studios would benefit from sales tax exemptions on qualifying photography services and would generally not have to collect/remit sales tax for those exempt services.
• Advertising agencies, commercial artists, and non-commercial photographers would be affected by the defined non-taxable service status, the list of non-taxable fees, record-keeping requirements, and the rules the Revenue Department must publish to implement the act.

Key Provisions

• Provides state sales tax exemptions for commercial photographers and other photographers to align their tax treatment with non-taxable advertising and related services, and authorizes the Department of Revenue to promulgate implementing rules.
• Defines terms used in the act, including Advertising Agencies, Commercial Artists, Finished Work Product, Non-Commercial Artists, Preliminary Art, Services, and Tangible Products, and states that services by commercial artists are non-taxable even if they result in tangible or digital outputs.
• Specifies non-taxable fees and charges, such as media commissions, consultation/concept development related to produced property, research/account planning, quality control, copywriting, certain talent fees, transfer of incidental tangible materials, and certain fixed-rate services not contingent on the sale of photographs; and establishes treatment for lump-sum charges by non-commercial photographers.
• Requires advertising agencies, commercial artists, and non-commercial photographers to keep records to substantiate the tax treatment and directs the Department of Revenue to promulgate rules to administer the act; the act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation