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 375.0884


(1) Generally

375.0884 Models. The sale of a model to a visual effects company is a taxable sale. The subsequent transfer of the model to the producer pursuant to a "qualified production service contract" is not a "sale."

If title but not possession of the model passes to the visual effects company, the transaction is a "sale." If neither title nor possession passes and the model maker merely operates the model, the model maker is the consumer of materials used to make the model.

If a sale is made, the following charges are included in the measure of tax:

(1) Charges for loading, unloading, moving, and trucking the model by use of the seller's facilities unless there is an explicit title clause as provided in Regulation 1628.

(2) Assembling the model. However, charges for bolting the model to the stage are excluded installation charges. 4/29/91.