Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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375.0000 MOTION PICTURES—Regulation 1529

Annotation 375.0730


(1) Generally

375.0730 Background Paintings. A vendor is commissioned to create, paint and deliver background to be used to develop and produce "qualified motion pictures." The backgrounds, which are painted on 10" x 12" paper, are combined with other animation work to create animated films. The animated films are then sold to outside clients.

The background paintings are "qualified production services" under Sales and Use Tax Regulation 1529(b)(2) and the charge by the vendor is nontaxable. Tax applies to the sale of tangible personal property purchased by the vendor which is used in producing the background paintings. 12/11/91.