[John Reidy]

A note on state sales tax.

I visited two CPA's and two lawyers and was advised by both that the North Carolina law reads that portrait work is consider a service and is not taxable BUT that the state more often than not will rule against their own reading.

To further explain this anomoly I have two friends that are professional photographers. They both told me their tale of listening to their accountants and how they also called the state for their input on sales tax. They were advised that they need not charge sales tax. After a year of business they were both contacted by the state claiming they were owed back sales tax. When told of their status and the advice they received, the state ignored their protests and insisted they pay, which they did.

Needless to say, I am following my lawyers advice to collect and pay sales tax regardless.