Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
440.0000 PROPERTY USED IN MANUFACTURING—Regulation 1525
(a) MANUFACTURING AIDS
(7) Miscellaneous Specific Aids
440.1095 Film and Negatives Used to Produce Sample Prints. Raw film and optical sound track negatives were used in the process of duplicating previously released motion pictures from which sample prints were made. The sample prints and the negatives used to produce them were then sold. In this case, the negatives were used as manufacturing aids to make the sample prints prior to being sold. Therefore, use tax applies to the cost of the raw film stock and the optical sound track used to make the sample prints, as set forth in Regulation 1525.1, in addition to the sales tax due upon their sale to the purchaser. 8/28/91.