We get this question a lot, so I'm going to let the Sales Tax Board of Equalization answer for me:
“Portrait, wedding, and other noncommercial photography: When you sell art prints or shoot photographs for noncommercial use, the taxable amount of your charge will generally include all of the following:
• Your charges for the physical product you transfer to your customer.
• Any labor and services involved in producing or fabricating the photograph.
• Any reproduction rights associated with the photograph.“
In plain English: If we provide a service that produces a physical product, we must charge tax on the entire service.