HB290 Alabama 2017 Session

Summary

Primary Sponsor

April WeaverSenator

Republican

Session

Regular Session 2017

Title

Sales and use tax, photographs and commissioned portraits, exempt as a service, Secs. 40-23-4, 40-23-62 am'd.

Summary

HB290 changes sales and use tax rules to exempt photography services from sales tax while clarifying that photos and commissioned portraits sold separately remain taxable, and it aligns exemptions between sales and use tax with retroactive and immediate effects.

What This Bill Does

The bill exempts the gross receipts from services provided by photographers or commissioned portrait artists from sales tax. It also states that the gross proceeds from the sale of photographs or portraits are taxable if they are not merely incidental to the services provided. It standardizes and aligns certain sales tax exemptions with use tax exemptions, and applies retroactively to open tax years with no refunds for periods before the effective date; the act becomes effective immediately after the Governor signs it.

Who It Affects

• Photographers and commissioned portrait artists—services they provide would be exempt from sales tax, reducing tax collection on those services.
• Consumers or buyers of photography services and of photographs/portraits—tax treatment changes depending on whether the purchase is a service (exempt) or a sale of photos/portraits (potentially taxable if not incidental to the service); retroactive and prior-period rules may affect past tax collections.

Key Provisions

• Exemption of gross receipts from services provided by photographers or commissioned portrait artists from sales tax (40-23-4).
• Sales of photographs or commissioned portraits are not exempt if the sale is not merely incidental to the services; such sales remain taxable regardless of delivery method.
• For sales of photographs or commissioned portraits made before October 1, 2017, neither the Department of Revenue nor local tax officials may seek payment for sales tax not collected.
• If sales tax was collected and remitted on these photography services before October 1, 2017, taxpayers and remitting entities may not seek refunds of that tax.
• The bill standardizes sales and use tax exemptions to provide uniformity for taxpayers by aligning current exemptions and incorporating certain sales tax exemptions into the use tax law.
• The act applies retroactively to all open tax years and periods where assessments could be entered, with no refunds allowed for periods prior to the effective date.
• The act becomes effective immediately following passage and approval by the Governor.

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