Featured Chrome Extensions:

Casey IRACs are produced by an AI that analyzes the opinion’s content to construct its analysis. While we strive for accuracy, the output may not be flawless. For a complete and precise understanding, please refer to the linked opinions above.

Keywords

appealhearing
contractplaintiff

Related Cases

Sahalee Country Club, Inc. v. State Bd. of Tax Appeals, 108 Wash.2d 26, 735 P.2d 1320
View Case »
Chestnut Fleet Rentals, Inc. v. State, Dept. of Revenue, 559 So.2d 264, 15 Fla. L. Weekly D820
View Case »
Horst v. Commissioner of Revenue, 389 Mass. 177, 449 N.E.2d 667
View Case »
Curry v. United States., 385 U.S. 873, 87 S.Ct. 147, 17 L.Ed.2d 100
View Case »
Cincinnati, New Orleans and Texas Pacific Ry. Co. v. Kentucky Dept. of Revenue, 684 S.W.2d 303
View Case »
Justia Law Link
LexisNexis Link
Westlaw Link
CourtListener Link
Oyez Link

Voss v. Gray, 70 N.D. 727, 298 N.W. 1

Facts

Clifton L. Voss operated a photography studio in Fargo, North Dakota, where he took photographs for patrons who sat for him. He held a sales permit but refused to collect sales tax on the photographs, arguing that the transaction was a service rather than a sale of tangible property. The Tax Commissioner assessed a sales tax on Voss's business, leading to a hearing where the assessment was affirmed. Voss then appealed to the district court, which ruled in his favor, prompting the Tax Commissioner's appeal.

The plaintiff is a photographer, licensed pursuant to the provisions of chapter 188, Session Laws 1939. He carries on his business in the city of Fargo. He held a sales permit issued by the State Tax Commissioner but refused to collect and pay sales tax upon photographs made by himself for patrons who sat for photographs to be made on their order.

Issue

Did the transaction between the photographer and the patrons constitute a sale of tangible personal property subject to sales tax under the North Dakota Sales Tax Act?

Did the transaction between the photographer and a person who arranges with the photographer to sit for and have a photograph made to his order one of sale 'of tangible personal property consisting of goods, wares and merchandise'?

Rule

The Sales Tax Act defines 'sale' as any transfer of tangible personal property for a consideration, and imposes a tax on the gross receipts from all sales of tangible personal property sold at retail in North Dakota.

The Sales Tax Act, chapter 249, Session Laws 1937, provides: '§ 1. * * * (b) ‘Sale’ means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration.'

Analysis

The court analyzed the nature of the transaction between Voss and his customers, concluding that the photographs produced were tangible personal property. The court emphasized that until the photographs were delivered or paid for, they remained the property of the photographer. The court found that the relationship between the photographer and the customer was one of sale, as the ultimate result of the transaction was the delivery of photographs for a fee.

We need not here determine to whom in the ordinary case the negative belongs after the photographs contracted for are delivered and paid for… But the fact that he does is not the determining factor. Through the employment of that talent and skill photographic likenesses are produced and, when produced, are tangible property.

Conclusion

The court reversed the district court's decision, ruling that the sales tax was applicable to the photographs made by Voss, as they were considered tangible personal property sold at retail.

The judgment of the district court is reversed and the case is remanded for further proceedings in accordance with this opinion.

Who won?

The Tax Commissioner prevailed in the case, as the court determined that the photographs constituted tangible personal property subject to sales tax, contrary to the district court's ruling.

The tax commissioner contends that when photographs are made and delivered to order for a money consideration, the transaction results in a sale of tangible personal property and accordingly the tax prescribed in section 2 of the act… must be paid to the photographer by the person whose photograph is thus taken.

You must be