Applying the 6 Michigan sales tax rules for incidental property to a videographer

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Michigan sales tax does not apply to property sold incidental to a service. In 2004, the Supreme Court set forth the following factors to be applied by a court when determining whether the transfer of tangible personal property is incidental to the provision of services: (1) what the buyer sought as the object of the transaction, (2) what the seller or service provider is in the business of doing, (3) whether the goods were provided as a retail enterprise with a profit-making motive, (4) whether the tangible goods were available for sale without the service, (5) the extent to which intangible services have contributed to the value of the physical item that is transferred, and (6) any other factors relevant to the particular transaction.

How does this relate to a videographer in Michigan who records weddings, sporting events, or dance recitals? Is videographry considered a professional service or are the tapes or DVDs considered a taxable product? A painter or artist can create a painting and sell it to anyone. The product itself has value and it can be resold again and again. A videographer is hired to record a certain event at a specific time and the footage is only valuable to the person who hired the work. If a calligrapher adds value to someone else’s stationary, it is not taxed. If they add it to their own stationary and then sell that stationary, then it is taxed. So, if a videographer were to add value to someone else’s blank DVDs, would it not be the same thing? And why would it have to be someone else’s DVDs based on the above 6 rules of incidental property?