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 375.1035


(1) Generally

375.1035 Stock Shots. A taxpayer has a library of videotapes and films. When a producer or editor has a need of a stock shot to insert in his/her program, they call the taxpayer who finds the appropriate shot(s) in their library. The shot(s) are then sent to the producer on a search reel which is later returned to the library. The taxpayer charges a "search fee" to find the appropriate shot and a fee for each second of footage the producer actually uses in their program.

In this case, the taxpayer is making a lease of the stock shots because the customer must return the film or tape. According to Regulation 1529, the production of stock shots is a qualified production service. The person producing the stock shot is a consumer and tax applies to the sale of the property used to produce the stock shot. The transfer of a stock shot, either by outright sale or lease, is not taxable. Therefore, tax does not apply to the charge for such leases. 11/3/89.