Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
375.0000 MOTION PICTURES—Regulation 1529
(b) ON AND AFTER SEPTEMBER 22, 1988
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.