Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
375.0000 MOTION PICTURES—Regulation 1529
(a) TRANSACTIONS UNDER PRIOR LAW (MAY 1, 1950 TO SEPT. 21, 1988)
(4) Use in State
375.0580 Out-of-State Production of Live Film—Filmed Commercials.Animated film strips made outside the state and shipped into the state for use as part of filmed television commercials are products sold to a California consumer, the producer who integrates the film strips into the commercials. The total cost of film strips brought into the state are subject to the tax since the film is completely consumed and integrated into the final product by the California operation. It makes no difference if the final product is shipped out of the state because the completed production is made in California and the consumption of the integral parts occurs within the state. 8/10/64.