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 375.1012


(1) Generally

375.1012 Sales Support and Training Videotape. A production company contracts with an advertising agency to produce a sales support and training videotape for a client. The concept for the videotape is developed by the advertising agency after a series of meetings with its client. The agency provides the company with a script and provides appropriate creative direction. The production company provides producing and directing services: contracts for talent, crew and equipment, and writing services. The company provides the agency with a finished master tape and the required number of copies of the final version, usually five to ten copies.

The sales support and training videotape is a "qualified motion picture," with the production company being the consumer of the tangible personal property used in producing the videotape, except for the raw stock upon which the company records the duplicate tapes for exhibition or broadcast. Sales tax does not apply to the company's charge for the master tape, but tax does apply to the charge for the duplicate copies produced for exhibition or broadcast. 3/15/89.