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 375.0750


(1) Generally

375.0750 Computer Created Graphics and Animation. A business provides computer graphics and animation for video and television. The graphics and animation are created on a computer.

When special effects, animation, or computer graphics are created for use in producing a qualified motion picture, qualified production services are performed. Tax does not apply to these charges. Tax applies to the sale of tangible personal property to the taxpayer, used in providing the qualified production services including the materials which comprise the final product that is transferred to the customer. However, if the graphics and animation are created for live television shows that are not videotaped, tax applies to the total charge. 5/4/93.