Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   


375.0000 MOTION PICTURES—Regulation 1529

Annotation 375.0745


(1) Generally

375.0745 Charges in Connection with the Production of a "Qualified Motion Picture." Tax application for the various charges in connection with the production of all or any part of a qualified motion picture are set forth below:

(1) Film Processing—The processing of film prior to the manufacture of the release print is not subject to tax. Among the items included in film processing are: developing, printing, superimposure, first trial from the original negative, first trial from the dupe negative, sync check prints, master positives and duplicate negatives. With respect to the manufacture of release prints, these charges will be taxable unless otherwise exempt (i.e., resale, interstate commerce, etc.), whether or not the release prints are for private or commercial exhibition.

(2) Charges by the Title and Optical Department—Services provided by the title and optical department are considered to be nontaxable qualified production services when the resultant work product being manufactured is incorporated into the original master positive or dupe negative prior to the manufacture of release prints.

(3) Charges by the Videotape Department—The services provided by this department include the transfer of film dailies to tape and the manufacture of cassettes used for viewing for quality, evaluation and context, but not for broadcast or pay to view. The above services, if not in connection with the manufacture of release prints, are not subject to tax. 8/3/89; 5/29/96.