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 375.1315


(1) Generally

375.1315 Videotape Production—Focus Group. A production company contracts to videotape a focus group, comprised of 10–12 members of the general public who are asked to provide input on new products, new advertising campaigns, or new services. The production company provides all necessary equipment and personnel for the taping but is not involved in running the focus group. The focus group is led by a moderator who is hired by the company whose product or service is being evaluated. The transfer of the video to the customer takes place prior to the time the videos are exhibited or broadcast to its general audience. The videos are made for the analysis of consumer reaction to proposed new products, services, or advertising campaigns and, thus, are made for "commercial, advertising, and promotional purposes."

Since these productions are produced for the purposes stated above and are transferred to the customer prior to their exhibition or broadcast to the intended audience, they meet the definition of "qualified motion picture" for the purposes of Regulation 1529. The transfer of the videotape to the customer is not taxable and sales or use tax does not apply to the charge for the videotape. However, the production company (producer) is the consumer of tangible personal property consumed in the production of the videotape and sales or use tax applies to purchases of tangible personal property consumed in the production of the videotapes. 12/4/95; 1/23/96.