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 375.0982


(1) Generally

375.0982 Producer of Video Series. A taxpayer has been hired to produce a video series by a client. The video series, as well as all the video tape used in the creation of the series, are the copyrighted property of the taxpayer's client. The taxpayer will not be involved in any duplication or sale of the finished video series. The taxpayer will be involved in producing the master tapes, window dubs edited masters, and safety masters only. The client will be solely responsible for duplicating and distributing the series.

Since the video series is a "qualified motion picture" as defined in Regulation 1529(b)(3), the transfer of the masters is not a "sale" and is, therefore, not subject to the sales tax. Rather, the taxpayer is the consumer of the tangible personal property such as tape stock and equipment used in producing the video series and the sale of such property to the taxpayer is subject to tax. The client's sales of the release prints of the video series in this state would be subject to sales tax. 9/15/95.