Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(e) MISCELLANEOUS ACTIVITIES
Captioning activity is considered a service transaction even though the results of the service activity may be recorded in a machine-readable form and transferred to the client or encoding house on a captioning disk or an encoding disk. The caption editor is required to use language skills to address the needs of the hearing impaired while considering the nature of the program. What is paid for is not putting the symbols on the disk, but the service creating the words and symbols.
Reformatting is editing or altering material previously captioned to match a new version of the program. It is a service activity not subject to tax.
Encoding is the process of integrating captions with the program owner's master tape. This is usually done by someone other than the firm that created the caption. Charges for encoding are nontaxable when such services are in connection with the production of a qualified motion picture. 12/19/88.