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
375.0875 License Agreement of Videotape. A video production company, in conjunction with university faculty, develops videotape programs of industry related topics and speakers, in order to supplement existing university curricula. The production company obtains corporate funding for the project, is responsible for technical content, distributes the videotapes and holds the copyright. Copies of the videotapes are transferred to the participating universities under a site license agreement which is good for the life of the tape.
Since the universities are not obligated to return the tape, the transaction is a sale rather than a lease. Accordingly, tax applies to the site license fees received from the universities as part of the gross receipts from the sales of the videotapes. 10/6/89.