Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2016

Sales and Use Tax Annotations

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195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.2118


195.2118 Video Cassette Labels. The following two types of labels which perform the functions as described below are nontaxable sales for resale when sold to lessors of video cassettes and attached to video cassettes that will be leased (sales).

(1) Tamper-Guard Label: (a) identifies the video lessor by name; (b) usually gives the video lessor's address and telephone number; (c) gives a warning not to tamper with the plastic container which holds the video (magnetic) tape; and (d) provides a security for the lessor in that it discloses whether the magnetic tape has been replaced with a copy.

Tamper-Guard is constructed of a material which does not allow the label to be removed and reapplied; it is placed on the seam of the video container.

(2) Lessee Information Label: (a) provides the lessee with information as to the lease terms, directions on how to store the video, or the type of movie on the tape.

Information labels are made of a material which would allow them to be removed and replaced. 11/20/89.