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I used to do a more complicated release form. I now do a very simple model release form that states:
1. I am getting permission to show the art for my advertising purposes (and I list specific things like my website, business cards, etc).
2. The child will not be identified by name.
The parent then puts down their name and child's name, stating that he or she is the child's guardian and signs/dates that permission is given.
As far as sales tax, if it came up, I would state that I am in business and all businesses are required to collect sales tax.
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