CAROLINA PHOTOGRAPHY, INC. v. Hinton

WYNN, Judge.

Under the Sales and Use Tax Act, revenue derived from the “sales price” of tangible personal property is taxable income. 1 In this matter, the Secretary of Revenue argues that the trial court erred by ruling that “sitting fees” charged by Carolina Photography on photographs ultimately sold to high school seniors did not constitute taxable income. Because Carolina Photography’s “sitting fees” are charges for fabrication labor of printed photographs, we hold that the “sitting fees” constitute taxable income and therefore reverse the trial court’s ruling.

Carolina Photography engaged…