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 375.0795


(1) Generally

375.0795 Film and Video Productions. A film and video production company provides its customers with training video production services and also provides for video duplication. The customer provides an idea for the videotape and also owns all materials used in the production of the product. The company produces the script, scenes tapes, and the master tape which is the final product. The final product is used by the customer in house as a training or safety aid for its employees.

When a "qualified motion picture" is produced, tax does not apply to the charge to the customer. Training films are qualified motion pictures. The producer is the consumer of, and tax applies to the sale to the producer of, tangible personal property used in making the qualified motion picture.

If the producer purchases materials and sells them to the customer prior to use, the producer is the retailer of such materials and tax applies to the sale of the materials by the producer. Tax applies to the sale of duplications provided to the customers to use as release prints. 8/31/92.