Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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M

375.0000 MOTION PICTURES—Regulation 1529

Annotation 375.1320

(b) ON AND AFTER SEPTEMBER 22, 1988

(1) Generally

375.1320 Videotape Productions. A video services operations requested interpretation of the application of sales tax to charges in connection with producing videotapes:

(1) The operator is hired with a camera to shoot a function and to furnish a VHS dub.

If the videotape is a "qualified motion picture" per Regulation 1529, tax does not apply to the charge for the initial videotape provided to the client. If it is not a "qualified motion picture," the entire charge is subject to tax.

(2) A client asked for a commercial to be re-edited, after which the client receives a VHS dub.

The performance of editing work on a qualified motion picture is nontaxable as a charge for qualified production services.

(3) The operator is hired to shoot and edit a promotional video and to give a VHS copy.

Tax does not apply to the charge. However, tax applies to the sale of the blank tape to the operator.

(4) The operator is hired to consult on an edit for a client.

If the operator merely consults with a client, without performing any labor which results in the production, fabrication, or processing of tangible personal property, tax does not apply to the charge for consultation whether the videotape is a qualified motion picture or not.

(5) The operator shoots news for a TV station and gives them the original tape.

The news tape would be a qualified motion picture. Tax does not apply to the charge to the television station for the tape. 4/27/92.