The Mississippi Department of Revenue proposes to amend its regulation for Photographers and Film Developers to specify that certain digital products would be subject to sales tax. Under the proposed regulation, photographs, pictures, videos, discs, other tangible personal property and “specified digital products” sold by photographers and videographers are taxable. The proposed amendments would be effective October 1, 2021.
The Mississippi Department of Revenue has appealed to the Mississippi Supreme Court a chancery court decision reversing a sales tax assessment against a wedding photographer. That decision noted that no statute subjects digital photography to sales tax, and that the regulation did not authorize the Department to impose tax on the wedding photographer in the case.